Outflow of Stablecoins from South Korea Continues for 18 Consecutive Months, Exceeding $360 Million in June

cryptonews.ruPublished on 2026-08-03Last updated on 2026-08-03

Abstract

In June 2026, South Korea experienced a net outflow of stablecoins to overseas crypto exchanges, amounting to 560.3 billion won ($367 million). This represents approximately 78% of the net value of foreign stocks purchased by Korean investors in the same period. According to the Financial Supervisory Service (FSS), this marks the 18th consecutive month of net outflows, a trend ongoing since January 2025. The FSS reported that 2.76 trillion won ($1.8+ billion) in stablecoins were withdrawn from the country's five major exchanges to foreign platforms in June, while 2.2 trillion won ($1.4 billion) flowed back in. The second quarter of 2026 saw a significant net outflow of 1.69 trillion won (~$1.1 billion), surpassing net sales of foreign stocks in the same period. Analysts cite access to unavailable domestic financial instruments as a primary driver. Foreign platforms offer crypto derivatives, spot and futures products tied to major Korean stocks like Samsung and Hyundai, along with RWA tokenization, DeFi, staking, and leveraged products. Lawmaker Lee Jong-wook warned that the stablecoin outflows constitute capital flight, exposing investors to risks on unregulated foreign platforms. He called for accelerated regulatory reform and enhanced investor protection measures. The government is reportedly working on a digital assets law to foster the blockchain sector.

In June 2026, the net outflow of stablecoins from South Korea to overseas cryptocurrency exchanges reached 560.3 billion won ($367 million). This constitutes about 78% of the volume of net purchases of foreign stocks by South Korean investors during the same period. This is reported by local media citing data from the Financial Supervisory Service (FSS).

According to the regulator's information, in June, stablecoins worth 2.76 trillion won (over $1.8 billion) were withdrawn from the country's five largest crypto exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — to foreign platforms. At the same time, 2.2 trillion won (about $1.4 billion) flowed in the opposite direction.

Outflow Continues for 18 Consecutive Months

According to FSS data, net stablecoin outflow has been observed continuously since January 2025. During this period, the volume of funds users transfer to foreign exchanges has each time exceeded the amount flowing back into the country.

The second quarter of 2026 was particularly indicative, the statement notes. During this period, net stablecoin outflow amounted to 1.69 trillion won (about $1.1 billion), while foreign stock transactions resulted in net sales of 1.62 trillion won (about $1 billion).

As noted by the agency, the main reason for the outflow is access to financial instruments not available on Korean crypto exchanges. Specifically, foreign platforms offer trading of cryptocurrency derivatives, as well as spot and futures products tied to shares of major South Korean companies, including Samsung Electronics, SK Hynix, and Hyundai Motor.

Additionally, services in the tokenized real-world assets (RWA), DeFi, staking, and high-risk leveraged products are in demand.

Parliament member Lee Jong Wook stated that the increase in stablecoin transfers abroad leads to capital outflow and leaves investors without proper protection when trading risky products on foreign exchanges. In his opinion, the government should accelerate regulatory reform and the investor protection system.

Recall that we previously reported that South Korea will accelerate the development of the blockchain sector and is preparing a digital assets law.

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