South Korea Crypto Trading Volume Falls Below One-Tenth of KOSPI Activity
Highlights:
- South Korea’s crypto trading activity dropped to just 8% of KOSPI stock market trading volume in May.
- South Korean investors shifted capital toward semiconductor stocks as crypto demand weakened.
- The negative Kimchi Premium showed weaker Bitcoin buying demand among South Korean crypto traders.
South Korea’s crypto trading activity fell to one-tenth of stock market levels in May, according to Digital Asset. Digital Asset analyzed trading volume data through May 26 from Upbit, Bithumb, Coinone, Korbit, and Gopax. The report showed that trading volume across South Korean crypto exchanges reached only 8% of total KOSPI trading activity during May.
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South Korea’s Crypto Trading Activity Falls to One-Tenth of Stock Market Levels
According to Digital Asset, following the sharp decline in the digital asset market in October 2025 and the continued record highs of South Korea’s KOSPI index, trading activity in the country’s… pic.twitter.com/vKqZQh1XcJ
— Wu Blockchain (@WuBlockchain) May 27, 2026
Digital Asset reported that South Korea’s crypto market downturn started during the second half of last year after trading activity weakened across local exchanges. South Korean crypto trading volume reached 99% of KOSPI trading activity in August before market conditions weakened. The crypto-to-KOSPI trading ratio declined in September before collapsing further in October after a massive futures liquidation crisis intensified selling pressure.
South Korea Won-based crypto trading volume across exchanges declined 71% between August and May. KOSPI trading activity increased 243% between August and May as investors increased exposure to equities. Digital Asset linked the KOSPI rally to South Korea’s semiconductor boom and government-led stock market stimulus measures.
KOSPI trading activity reached record highs during the same period as semiconductor companies attracted stronger investor demand in South Korea. Crypto assets lost market share in South Korea as investors increased exposure to semiconductor and equity-related investments. The report showed that local traders reduced crypto participation while stock market demand continued rising.
Retail Investors Shift Toward Equities as Market Momentum Changes
Digital Asset reported that South Korean crypto traders showed weaker buying demand than overseas investors during recent market sessions. Digital Asset cited CryptoQuant data showing that the Bitcoin Korea Premium remained negative across several recent trading sessions in South Korea. Crypto traders commonly call the indicator the Kimchi Premium.
A negative Kimchi Premium means Bitcoin prices on South Korean exchanges trade below prices on overseas crypto platforms. CryptoQuant data showed that the Bitcoin Korea Premium turned negative in March before briefly returning to positive territory in April.
CryptoQuant data later showed the Bitcoin Korea Premium returning to negative territory after the short-lived April recovery. Digital Asset stated that the negative Bitcoin Korea Premium showed South Korean investors continued reducing crypto purchases despite active global crypto markets.
South Korean crypto investors cut their positions by $42 billion between January last year and February this year. The daily trading activity across Upbit, Bithumb, Coinone, Korbit, and Gopax declined sharply during the market slowdown.
South Korea Crypto Trading Faces New Tax and Transfer Rules
Meanwhile, South Korean regulators plan stricter crypto oversight measures as domestic trading activity continues declining across local exchanges. The government will apply a 22% tax on virtual asset gains above 2.5 million won starting Jan. 1. Tax authorities expect investors to submit the first full crypto tax filings in May 2028 for profits earned during 2027.
South Korea’s National Tax Service started preparing crypto tax guidance with Upbit, Bithumb, Coinone, Korbit, and Gopax ahead of the rollout. South Korean regulators plan stricter overseas transfer reporting rules involving foreign exchanges and private crypto wallets.
In a separate development, South Korean prosecutors charged five individuals linked to the Solana-based memecoin project CatFi after investors lost funds during the project’s collapse. South Korean prosecutors described the CatFi investigation as the first rugpull prosecution under the country’s Virtual Asset User Protection Act.
JUST IN: South Korea files its first indictment tied to a meme coin rug pull on a DEX, charging five individuals over the Solana-based CATFI scheme. pic.twitter.com/LD56uE5nOI
— EyeWhales (@EyeWhales) May 27, 2026
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Austin Mwendia
Austin Mwendia is a passionate crypto journalist with three years of experience. He has contributed to various media outlets, covering blockchain technology, market analysis, and financial trends. He is committed to educating readers and expanding the adoption of blockchain and decentralized finance.
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