South Korea records $367 million in stablecoin outflows for 18th consecutive month

Aug 2, 2026

South Korea recorded a $367 million net stablecoin outflow in June, its 18th consecutive month of capital flight in the category. The trend is driven by investor demand for products like derivatives and DeFi, which are unavailable on domestic exchanges. Amid a contracting local market and a wider leverage unwind, regulators are now considering new rules for investor protection and cross-border activity.

Stablecoin outflow magnitude

▪South Korea recorded a net stablecoin outflow of 560.3 billion won ($367 million) in June 2026.
▪In June 2026, South Korea's five major crypto exchanges sent 2.7 trillion won ($1.81 billion) in stablecoins offshore while receiving 2.2 trillion won ($1.44 billion).
▪The June 2026 stablecoin outflow was equivalent to 77.6% of the $470 million South Koreans invested in foreign stocks during the same month.
▪June 2026 marked the 18th consecutive month of net stablecoin outflows from South Korea, a streak that began in January 2025.

Foreign exchange features

▪Some foreign exchanges offer tradable contracts for South Korean companies like Samsung Electronics, SK Hynix, and Hyundai Motor.
▪South Korean traders are moving stablecoins to foreign exchanges to access products like derivatives, tokenized real-world assets (RWAs), DeFi, and staking.
▪South Korean investors sent a net $1.28 billion into foreign leveraged exchange-traded funds (ETFs) in June, more than tripling the May total.

Domestic market contraction

▪Domestic crypto trading volume in South Korea fell by nearly 55% in the first half of the year.
▪South Korea has confirmed a 22% crypto tax for 2027.

Regulatory response plans

▪A policy report recommended introducing interim licensing guidance and phasing in stablecoin regulations ahead of the finalized Digital Asset Basic Act.
▪On June 22, South Korea’s Financial Intelligence Unit (FIU) proposed extending Travel Rule reporting requirements to transactions below 1 million won (about $650).
▪Lawmaker Lee Jong-wook called on the government to review its investor protection and supervisory frameworks for cross-border crypto activity.

Leverage unwind crisis

▪The assets of fourteen leveraged ETFs tracking Samsung and SK Hynix fell from about $10.7 billion at the end of June to $6.3 billion by July 13, 2026.
▪Margin loans at South Korean brokerages fell by about $4.4 billion between June 24 and July 30, 2026, to a total of roughly $21.8 billion.