South Korea Records 60 Billion USD Crypto Outflows, Domestic Exchange Profits Plummet

South Korea recorded approximately $60 billion USD in crypto capital outflows abroad in the second half of 2025, according to the Financial Services Commission (FSC). Total outflows increased by 14% to 90 trillion won, mainly due to arbitrage activities and cross-border trading as investors seek better prices, higher liquidity, and more diverse products.

However, domestic participation still increased, with 11.1 million accounts and deposits rising by 31% to 8.1 trillion won. However, the profits of exchanges decreased by 38% to 380.7 billion won, and trading volume dropped by 15%. Market capitalization also declined by 8% due to the global cooling trend after Bitcoin peaked in October 2025. Strict domestic regulations are seen as the main reason for the continued capital shift abroad.