South Korea posts 18th month of stablecoin outflows, $367M in June

Financial Supervisory Service data submitted to lawmaker Lee Jong-wook show South Korea’s five major won-based exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — sent a net 560.3 billion won ($367 million) in stablecoins offshore in June. The platforms transferred about 2.76 trillion won out and received roughly 2.20 trillion won back. Cumulative net outflows since January 2025 total about 14.92 trillion won, roughly $10.4 billion. June’s net exceeded May’s 477.1 billion won but remained below January’s 1.14 trillion won peak. Across the second quarter, net stablecoin outflows reached about 1.69 trillion won, near $1.1 billion.

The data and market participants point to regulatory limits on certain products as the primary reason for transfers. Korea’s Specific Financial Information Act restricts decentralized finance services, liquid staking, tokenized real-world assets and leveraged derivatives on licensed domestic exchanges. To access perpetual futures, onchain yield strategies and staking, traders typically convert won into dollar-pegged stablecoins on local platforms and move those tokens to overseas venues.

In June, net stablecoin outflows equaled 77.6% of the value of Korean investors’ net overseas stock purchases, up from roughly 20% in early 2025. During the second quarter, Korean investors were net sellers of foreign equities by about 1.62 trillion won while stablecoin transfers totaled 1.69 trillion won.

Domestic liquidity and user engagement on licensed exchanges have been affected as outflows continued. Active user ratios across the five major platforms fell to about 19.5%. Each transfer of stablecoins offshore reduces liquidity available on regulated Korean venues and increases liquidity on platforms outside domestic oversight. The 18-month sequence spans periods of rising and falling crypto prices.

Lawmakers are citing the outflow figures to propose a won-pegged stablecoin framework and expanded corporate access to the market. Private firms are also moving: Circle has signed memoranda of understanding with Kakao Group and Toss Bank and earlier reached arrangements with Upbit and Bithumb, the exchanges that handle most of Korea’s daily crypto volume.

Other jurisdictions have taken different approaches to stablecoin rules. Japan has adapted electronic payment rules for a yen stablecoin framework and Hong Kong has enacted a licensing ordinance for stablecoin issuers.

Eighteen consecutive months of net outflows total about 14.92 trillion won ($10.4 billion). The figures provide a national-level measure of retail use of dollar-pegged stablecoins as a channel for cross-border capital flows.