Overseas remittances via cryptocurrency exchanges in South Korea have surged 380% over the past three years, dramatically outpacing the 20% growth seen through traditional banks, according to a report by SBS Biz. Data from Representative Kim Sang-hoon's office shows that remittances through the country's top five won-denominated crypto exchanges jumped from 34.02 trillion won ($26.2 billion) in 2022 to 163.55 trillion won ($125.8 billion) in 2025. Over the same period, foreign currency remittances handled by the top five banks grew from 1,318 trillion won to 1,590 trillion won.
The sharp rise is largely attributed to lower transaction fees. Dongguk University Professor Hwang Seok-jin noted that sending $20,000 via a bank costs roughly 25,000 won, while a Bitcoin transfer through a domestic exchange costs about 19,000 won regardless of amount. Faster settlement times also make crypto more attractive for cross-border payments.
Traditional banks are responding. Toss Bank recently signed an MoU with the Solana Foundation covering international remittances. Shinhan Financial Group and Industrial Bank of Korea have explored stablecoin-based payments. Meanwhile, South Korea is set to introduce a regulated cross-border virtual asset transfer framework in December under amended Foreign Exchange Transactions Act. The new rules will require service providers to register and report transactions, potentially opening the door for fintech firms alongside existing Virtual Asset Service Providers.
The trend underscores a growing preference for digital assets as practical payment tools, challenging the dominance of traditional banks and highlighting the need for clear regulatory guardrails.
