South Korean crypto exchanges posted operating profit of KRW 81. 6 billion in the first half of 2026, a 78% collapse from KRW 374.
South Korean crypto exchanges posted operating profit of KRW 81.6 billion in the first half of 2026, a 78% collapse from KRW 374.8 billion recorded in the second half of 2025, according to a joint survey by the Korea Financial Intelligence Unit and the Financial Supervisory Service published on October 1.
KoFIU Survey: The Key H1 2026 Figures
What to Know
- South Korean virtual-asset exchange operating profit fell 78% half-over-half to KRW 81.6 billion in H1 2026.
- Average daily trading volume declined 44% to KRW 3.1 trillion over the same period.
KoFIU and the Financial Supervisory Service surveyed 26 virtual-asset service providers as of June 30, 2026: 17 exchanges and nine wallet and custody firms. Two of 28 registered providers did not submit data, and the FSC notes the figures are aggregations of company submissions rather than nationally approved statistics. For related coverage, see South Korea Arrests Fake FXRP Scam Suspects After $8.6M XRP Theft.
The profit decline of KRW 293.2 billion came alongside broad revenue compression. Exchange revenue fell 41% to KRW 576.8 billion, won deposits dropped 35% to KRW 5.2 trillion, and the domestic virtual-asset valuation fell 33% to KRW 58.9 trillion over the same comparison period. For related coverage, see Cyber Revolution Summit Vietnam 2026.
Average daily trading volume at surveyed exchanges stood at KRW 3.1 trillion in H1 2026, down KRW 2.3 trillion, or 44%, from KRW 5.4 trillion in H2 2025. Total first-half trading volume reached KRW 555 trillion, compared with KRW 1,001 trillion in the prior half-year period.
How Lower Daily Trading Volume Relates to Exchange Profits
South Korean exchanges derive nearly all of their revenue from transaction fees on won-denominated markets. Electronic Times reported that fee revenue accounted for 99.7% of surveyed exchange revenue, meaning activity levels in the won market translate almost directly into top-line results. The H1 2026 trading slowdown coincides with the margin compression visible in the operating-profit figures.
That structural dependence on spot trading fees amplifies swings in volume: a 44% drop in daily turnover comes alongside a 78% drop in profit rather than a proportional decline. Operating costs, including compliance infrastructure required under South Korea’s virtual-asset service provider regulations, do not compress at the same rate as revenue when volumes fall.
The data does not attribute the volume decline to any single factor. The survey covers only the H1 2026 period and does not offer exchange-level breakdowns. The FSC explicitly notes that individual responses cannot be disclosed because they may be commercially sensitive.
Why the KoFIU Findings Matter for South Korea’s Crypto Market
The survey provides a defined snapshot of the South Korean exchange sector through June 30, 2026. It does not project second-half conditions, and later reporting will be required to determine whether trading activity and profitability recover, deteriorate further, or diverge across individual platforms.
South Korea’s regulatory posture toward virtual assets continues to evolve. The country has separately seen stablecoin outflows reach $367 million in June, a dynamic that runs parallel to the domestic won-market slowdown captured in this survey. The FSC has also been examining ownership and governance standards for crypto firms, with proposed changes to major shareholder rules for virtual-asset service providers under active discussion.
For Bitcoin specifically, South Korea remains a significant retail market. The KRW trading pair has historically commanded a premium over dollar-denominated spot prices, a spread that tends to compress when domestic demand weakens. The won-deposit figures in the KoFIU survey, down 35% to KRW 5.2 trillion at the end of June, offer one measurable indicator of that retail positioning. Bitcoin traded at $84,616 at the time of publication, down 2% over 24 hours, with a market capitalization near $1.7 trillion.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
