South Korea’s weekly crypto trading volume across the five major fiat CEXs (Upbit, Bithumb, Coinone, Korbit, Gopax) fell to roughly 9.97 trillion won ($6.65B) in the week of July 3–10, a 25.75% drop from 13.4 trillion won ($8.9B) the prior week and about 43.5% below early June, marking a two‑year low and the fifth consecutive weekly decline. The slump has coincided with a 31% nine‑week crash in the KOSDAQ and is attributed to tighter regulation, a Bithumb operational error and a shift of capital toward smaller platforms or DEXs, raising concerns about liquidity, wider spreads and higher volatility on major CEXs.

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In Brief

South Korea's crypto trading volume hit a two-year low, below 10 trillion won for the first time.
Weekly volume reached roughly 9.97 trillion won, down 25.75% from the prior week's 13.4 trillion.
The KOSDAQ index has crashed 31% in nine weeks, erasing nearly a full year of market gains.

South Korea’s crypto trading volume hit a two-year low, dropping below 10 trillion won ($6.7 billion) for the first time since September 2023.

The slump coincides with a dramatic collapse across the country’s stock markets.

Is South Korea Losing Its Crypto Market?

Trading volume measures the total value of assets bought and sold across exchanges over a set period. Weekly volume across South Korea’s five main fiat exchanges hit a two-year low, signaling a sharp cooling in overall market activity.

The five platforms include Upbit, Bithumb, Coinone, Korbit, and Gopax. In the week of July 3 to July 10, combined volume reached roughly 9.97 trillion won ($6.65 billion). Furthermore, that marks a 25.75% drop from the prior week’s 13.4 trillion won total ($8.9 billion).

The decline deepens over time. The current volume is about 43.5% below early June levels, according to WuBlockchain.

It marks the fifth consecutive weekly drop, reflecting a broad retreat in retail speculation nationwide.

Top 5 South Korean Exchanges' Volume Falls for Five Straight Weeks, Below KRW 10 TrillionAccording to Digital Asset, the weekly trading volume of South Korea’s top five fiat-market crypto exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) has fallen for five consecutive… pic.twitter.com/0iko3rSLNY
— Wu Blockchain (@WuBlockchain) July 11, 2026

Structural challenges add to the pressure. During the first quarter of 2026, combined volume had already fallen notably, with Bithumb dropping over 30%.

Furthermore, an operational error at Bithumb earlier this year damaged trust among cautious retail investors.

Tighter regulation compounded the caution. New limits on exchange ownership stakes reinforced a defensive mood. Consequently, many retail traders pulled back from the major platforms, deepening the multi-week slide in overall trading activity.

Why Are Crypto and the KOSDAQ Falling Together

The synchronized decline is no coincidence, given how South Korean investors move between tech stocks and crypto. Many traders speculate across both markets, so a decline in risk appetite in one quickly spreads to the other.

The KOSDAQ index has crashed 31% over the past 9 weeks, erasing nearly a full year of gains. That correction rivals the 2020 crash, when it fell 32% in five weeks.

Meanwhile, the KOSPI dropped 20% over three weeks, entering technical bear-market territory.

‼️SOUTH KOREAN STOCKS ARE CRASHING:The KOSDAQ index of small-cap technology stocks has dropped -31% over the last 9 weeks, erasing nearly one year of gains.This compares to a 32% drop over a 5-week period during the 2020 crash.By comparison, during the Great Financial… pic.twitter.com/sEF6KesfGA
— Global Markets Investor (@GlobalMktObserv) July 12, 2026

The AI trade sits at the center of the turmoil. Optimism around artificial intelligence is fading, especially after doubts over chip and semiconductor spending. Samsung and SK Hynix, along with leveraged ETFs, account for over 70% of traded market value, amplifying volatility.

Regulators are now watching closely. South Korea’s finance minister announced tighter oversight of leveraged single-stock ETFs, acknowledging the sector’s risk concentration.

As a result, that intervention adds pressure and pushes capital toward more defensive positions.

Shocking stat of the day:The Memory ETF, $DRAM, has surpassed $25 billion in assets under management (AUM) for the first time, officially overtaking the 26-year-old South Korea ETF, $EWY, despite launching on April 2nd.This comes as $DRAM has attracted a record +$22 billion… pic.twitter.com/BRMX0dRtl9
— The Kobeissi Letter (@KobeissiLetter) July 11, 2026

Analysts see the contraction as a reallocation, not an exit. Some activity may be migrating toward smaller platforms, DEXs, or traditional assets.

However, lower liquidity on major exchanges means wider spreads, higher volatility, and pressure on platform fee revenue.

Read the article at BeInCrypto