South Korea Crypto Trading Volume Hits Two-Year Low as Stock Market Slump Deepens

South Korea’s cryptocurrency market is experiencing a sharp slowdown as trading activity across the country’s largest exchanges falls to its lowest level in two years, mirroring a steep sell-off in domestic equities.

Weekly trading volume across the nation’s five major fiat-based crypto exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—dropped to approximately 9.97 trillion won ($6.65 billion) between July 3 and July 10. According to WuBlockchain, that represents a 25.75% decline from the previous week’s 13.4 trillion won ($8.9 billion) and a 43.5% drop compared with early June.

The latest figures mark the fifth straight week of declining trading activity, highlighting a significant reduction in retail investor participation. The slowdown follows weaker trading volumes recorded in the first quarter of 2026, with Bithumb alone posting a decline of more than 30%.

Investor confidence has also been affected by an operational error at Bithumb earlier this year, while stricter regulations on exchange ownership have encouraged many retail traders to adopt a more cautious approach.

The decline in crypto trading comes as South Korea’s stock market suffers one of its worst corrections in years. The tech-heavy KOSDAQ has plunged 31% over the past nine weeks, erasing nearly a year of gains and approaching the scale of its 2020 crash. Meanwhile, the benchmark KOSPI has fallen 20% in just three weeks, officially entering bear-market territory.

Much of the pressure stems from fading optimism surrounding artificial intelligence and semiconductor investments. Heavyweights such as Samsung Electronics and SK Hynix, along with leveraged exchange-traded funds tied to these stocks, account for more than 70% of market trading value, increasing volatility across financial markets.

Authorities have responded by announcing tighter oversight of leveraged single-stock ETFs to reduce concentration risks. While analysts believe investors are reallocating capital rather than leaving the market entirely, lower liquidity on major crypto exchanges could lead to wider trading spreads, increased price swings, and weaker fee revenue for trading platforms.