South Korea's domestic cryptocurrency trading activity has significantly declined compared to the country's stock market. According to data from Digital Asset, as of May 26, the total trading volume of Upbit, Bithumb, Coinone, Korbit, and Gopax accounted for only 8% of KOSPI's trading volume. This means that local crypto trading activity has fallen to less than one-tenth of KOSPI activity. The report notes that since the decline of the crypto market in October 2025, the gap has continued to widen, while the South Korean stock market is still pushing towards record highs.
This change marks a significant reversal from the end of 2024. In December 2024, the KRW-based crypto market trading volume reached 323% of KOSPI's trading volume, coinciding with a strong digital asset rebound related to Donald Trump's victory in the U.S. presidential election. Trump had expressed a desire to make the U.S. a hub for digital assets, which at the time boosted market risk appetite, but this momentum has not persisted in South Korea.
As KOSPI rises, market attention has gradually shifted from cryptocurrencies to stocks. The report attributes this stock market rally to the prosperity of the semiconductor industry and government support for the local stock market. As stocks strengthen, the relative weight of crypto trading in the domestic market has decreased.
The same report mentions that the KRW deposits at exchanges have fallen from 107 trillion KRW at the end of 2024 to 78 trillion KRW, indicating a weakening demand for cash in crypto trading.
Moreover, the weakness of South Korea's crypto market is also reflected in the so-called “Korean Bitcoin premium.” Digital Asset cites data from CryptoQuant, stating that this indicator has consistently been negative in recent trades. A negative premium indicates that Bitcoin prices on South Korean exchanges are lower than those in overseas markets, typically suggesting weaker local buying pressure.
This indicator turned negative in March, briefly rebounded to positive in April, and then returned to negative territory. This pattern shows that despite the global crypto market being active, local demand has not fully recovered. The weak premium provides context for the decline in trading volume, indicating that this slowdown is not just a matter of quantity but also a reflection of the demand from South Korean crypto traders.
Finally, the National Tax Service is also preparing guidance with Upbit, Bithumb, Coinone, Korbit, and Gopax. The first comprehensive reporting period for 2027 income is expected to be in May 2028.