Stablecoin outflows from South Korea’s five major won-based crypto exchanges have extended their negative streak to 18 consecutive months, according to data released by the Financial Supervisory Service (FSS) and reported by Yonhap News on August 2, 2026. In June alone, net outflows stood at 560.3 billion won (approximately $367 million), as exchanges sent 2.7625 trillion won in stablecoins abroad while receiving only 2.2022 trillion won back.
The figures, submitted to People Power Party lawmaker Lee Jong-wook, cover transactions from Upbit, Bithumb, Coinone, Korbit, and Gopax. The uninterrupted outflow streak began in January 2025, the start of the data series, and has persisted despite fluctuating monthly amounts—June’s net figure rose from 477.1 billion won in May but remained below January’s 1.1429 trillion won. In the second quarter alone, net outflows reached 1.6872 trillion won.
The transferred stablecoins are believed to be used primarily for overseas crypto derivatives, tokenized real-world assets (RWA), decentralized finance (DeFi) services, and staking products that are not available on domestic platforms. Some foreign exchanges offer leveraged products tied to cryptocurrencies and major Korean stocks like Samsung Electronics and SK Hynix. Lawmaker Lee called for stronger investor safeguards, noting that investors are “being left defenseless against high-risk derivatives on foreign exchanges.”
The outflows occur against a backdrop of weakening local trading activity—total volume on the five Korean exchanges dropped 54.6% year-over-year in the first half of 2026. Meanwhile, South Korean regulators are discussing broader digital asset legislation, including a planned Digital Asset Basic Act covering stablecoins, exchanges, and disclosures. For now, the ongoing capital movement highlights a structural shift as domestic traders increasingly seek services beyond the local market.
