In June, South Korean crypto traders sent $367 million more in stablecoins to foreign exchanges than they brought back, continuing a streak that has lasted for 18 months. This persistent outflow highlights growing demand for services unavailable in the local market.
Only five licensed Korean platforms Upbit, Bithumb, Coinone, Korbit, and Gopax manage most crypto trading in the country. Together, they transferred about $1.8 billion in stablecoins overseas while receiving $1.44 billion back. This gap accounts for nearly 78% of the $470 million Koreans invested in foreign stocks that month, a significant jump from just 20% a year ago.
The outflows persist despite a shrinking local crypto market, with trading volumes down 55% in the first half of the year. A new 22% crypto tax starting in 2027 may also be dampening domestic activity. Yet, traders are drawn abroad by access to leveraged crypto derivatives, decentralized finance protocols, and staking opportunities features largely missing from Korean exchanges. Some foreign platforms even offer contracts on major Korean companies like Samsung and Hyundai with use reaching tens of times.
These trends mirror broader appetite for international use, as evidenced by Koreans putting a net $1.28 billion into foreign leveraged ETFs in June, tripling May's inflows. Seoul has attempted to catch up by launching its first single-stock leveraged ETFs in late May, but the stablecoin exodus suggests local offerings still lag behind global options.
This content is for informational purposes and not financial advice.
