Throughout June 2026, five won-based domestic exchanges recorded a net stablecoin outflow of 560.3 billion won, equivalent to $367 million, sent to various overseas platforms.
Data from the Financial Supervisory Service reveals that this trend has persisted for 18 months. According to a report prepared for lawmaker Lee Jong-wook of the People Power Party, the value of stablecoins flowing to foreign exchanges has consistently outpaced the amount returning to local exchanges since January 2025.
Across Upbit, Bithumb, Coinone, Korbit, and Gopax, 2.7625 trillion won was sent abroad throughout June, compared to 2.2022 trillion won brought back in.
The 560.3 billion won net outflow marks an increase from May’s 477.1 billion won. However, it remains below the peak record set in January 2026, when net outflows reached 1.1429 trillion won.
Why They Are Choosing Foreign Exchanges
The primary motive behind this capital flight is believed to be gaining access to investment products absent from local exchanges. Investors are turning to platforms that offer crypto futures and derivatives trading.
Beyond derivatives, they are targeting decentralized finance services, staking features, and access to tokenized stocks of domestic companies like Samsung, SK Hynix, and Hyundai Motor. None of these instruments are available on domestic trading platforms.
This exodus has dealt a heavy blow to local businesses. Trading volume across the five major won-based exchanges plummeted 54.6% year-on-year in the first half of 2026.
A Scale Rivaling Overseas Stock Markets
This capital movement is now rivaling capital flows in traditional markets. In the second quarter of 2026, total net stablecoin outflows reached 1.6872 trillion won. That figure nearly equals the net purchase of foreign stocks by Korean investors over the same period, which stood at 1.6185 trillion won.
In June, stablecoin outflows represented a value equivalent to 77.6% of total foreign stock purchases. However, there is no conclusive evidence that both trends are driven by the same group of investors.
Responding to the report, Lee Jong-wook urged the need for domestic investor protections. He highlighted the vulnerability of users exposed to high derivative risks on overseas platforms.
The South Korean government is currently drafting the Digital Asset Basic Act. The legislation is designed to regulate stablecoin issuance, exchange operations, disclosure standards, and asset control, though final details have yet to be determined.
For policymakers, the data carries one clear message: investor capital cannot be forced to stay as long as domestic markets fail to offer the instruments they need.
Reported via crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
