South Korea Experiences 18 Months of Stablecoin Outflows

South Korea Experiences 18 Months of Stablecoin Outflows

In June 2026, South Korea’s five major won-based cryptocurrency exchanges reported a staggering 560.3 billion won (approximately $367 million) in net stablecoin outflows, extending an uninterrupted outflow streak to 18 months. Data from the Financial Supervisory Service, provided to People Power Party lawmaker Lee Jong-wook, illustrates a significant trend in the domestic crypto market.

Monthly Outflow Figures

During June, total transfers amounted to 2.7625 trillion won sent abroad, while only 2.2022 trillion won was returned to Korean exchanges. This ongoing trend represents the highest monthly outflow since January 2025, when the data series began, underscoring the persistent movement of capital across borders.

Investment Context

The outflow of stablecoins is primarily associated with investments in products unavailable on local exchanges, including derivatives, tokenized real-world assets, decentralized finance (DeFi) services, and staking options. Some overseas platforms provide access to futures and leveraged products linked to major Korean stocks like Samsung Electronics and Hyundai Motor.

The Larger Financial Landscape

Despite the substantial sums involved, the net outflows were still below the peak of 1.1429 trillion won observed earlier in the year. Over the second quarter, net stablecoin outflows reached 1.6872 trillion won, indicating a sustained trend as domestic trading activity continued to decline.

Investor Concerns and Regulatory Responses

Lawmaker Lee Jong-wook expressed concerns about the lack of protections for investors engaging with high-risk derivatives on foreign platforms and called for the government to enhance its investor management framework. As South Korea progresses in establishing digital asset regulations, the Financial Services Commission is examining internal controls and security standards for exchanges, while also considering potential guidelines for stablecoin issuers.

Future Outlook

The upcoming monthly exchange data will reveal whether July continued the streak of stablecoin outflows, prompting further scrutiny from regulators on whether these transfers relate to ordinary cross-border transactions or higher-risk financial instruments. The current figures reflect a notable shift in how South Korean investors are reallocating their resources, particularly amidst a backdrop of declining local trading activity.