Stablecoins Account for 47% of South Korea’s Q1 Crypto Outflows

Highlights:

• South Korea transferred approximately $40.6 billion in crypto abroad, with nearly half of the amount in stablecoins.
• Crypto inflows topped outflows as 64.78 trillion won entered Korean exchanges.
• Crypto accounts hit 16.29M in Korea, covering around 32% of the population.

In the first quarter of 2025, South Korea’s leading crypto exchanges sent approximately 56.8 trillion won (around $40.6 billion) worth of cryptocurrencies abroad. According to the Financial Supervisory Service (FSS), stablecoins such as USDT and USDC made up 26.87 trillion won, representing 47.3% of the total.

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Traders favor stablecoins for their price stability. They also help South Korean traders access global crypto platforms like Binance and Bybit, where most trading pairs are in dollar-based stablecoins, not the Korean won (KRW). 

FSS highlighted Upbit, Bithumb, Coinone, Korbit, and Gopax as the main platforms handling crypto transfers from January to March 2025. During this period, there was also a significant inflow of funds. A total of 64.78 trillion won was brought into South Korean exchanges, which was more than the amount sent abroad. Around 26.9 trillion won worth of stablecoins were included in this inflow. This indicates that the movement of crypto is happening in both directions.

32% of South Korea Adopts Crypto

Crypto use is rising fast in South Korea. By February, 16.29 million people had crypto accounts. That’s about 32% of the country’s population. The data was shared with Rep. Cha Gyu-geun from the Rebuilding Korea Party. The data shows steady growth into early 2025, led by five major exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax.

Recently, South Korean politician Lee Jae-myung recently shared his thoughts on crypto investment. In a May 6 Facebook post, he said he supports spot crypto ETFs. He also mentioned plans for a system to make investing safer, especially for young people. If elected president, he may work toward creating a better environment for virtual asset trading.

Unfazed by top court's guilty verdict and now in his third run, Democratic Party of Korea's Lee is now the presidential front-runnerhttps://t.co/A0jPeVo2hv

— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) May 6, 2025

South Korea lacks specific stablecoin regulations but plans to establish them later this year. The collapse of the Terra project from South Korea serves as a warning. South Korea has postponed the 20% capital gains tax on crypto until 2027, citing enforcement challenges. At the same time, the government is increasing its crackdown on market manipulation by enforcing stricter compliance measures under the Virtual Asset User Protection Act (VAUPA).

Stablecoin Market Booms

The overall stablecoin market is also reaching new heights. In March 2025, its total market value surpassed $230 billion. As of now, it has grown to $242.222 billion, rising by $157.28 million over the past week. Several major South Korean banks are working together to create a Korean stablecoin. The group includes Shinhan, Woori, KB Kookmin, NH Nonghyup, IBK, Suhyup, and KFTC.

South Korean Banks Collaborate on Stablecoin Issuancehttps://t.co/1mzt78VgtW pic.twitter.com/yVyH4i56sv

— Kimchi Premium (@kimchipump) April 24, 2025

Simultaneously, the Trump family ventured into the stablecoin market through their firm, World Liberty Financial, releasing USD1, a private stablecoin. In just two months, it reached the seventh spot globally, with a market cap of $2.12 billion.

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