South Korea crypto exchange profits fall 78% in H1 amid trading slump

South Korea's domestic crypto exchanges experienced a significant earnings decline in the opening half of 2026 as trading conditions deteriorated, according to data released by the Korea Financial Intelligence Unit. KoFIU said average daily trading volume at registered virtual asset exchanges fell 44% compared with the prior six-month period, while market capitalization of listed crypto assets dropped 33%.

The report also showed a 35% fall in won-denominated customer deposits and a 41% decline in exchange sales over the same interval, even though the number of accounts eligible to trade edged up by 0.4%. KoFIU's survey encompassed 26 virtual asset service providers, including 17 operators of exchanges and nine custody and wallet firms, and covered activity from January 1 through June 30.

Additional reporting suggests the weakness in crypto trading coincided with renewed investor interest in South Korea's stock market. KoFIU cited a May figure showing the total value of crypto held by South Korean investors dropped 50.2% year over year to 60.6 trillion won (about $41.4 billion). A Cointelegraph analysis published in July found combined average daily volume across five major exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — was roughly 89% lower year over year during comparable seven-day periods, while the KOSPI benchmark had more than doubled over the 12 months to July 22.

The government data and market analyses point to broad reduced activity across the virtual-asset sector that has materially cut revenue for exchange operators. Cointelegraph contacted major operators including Bithumb and Dunamu, which runs Upbit, for comment on the figures.