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South Korea’s Stablecoin Outflows Hit 18 Months as ₩14.9 Trillion Moves Offshore

Regulators warn the sustained transfers are draining onshore liquidity, exposing gaps in anti-money‑laundering and foreign‑exchange oversight, and raising pressure to finish stablecoin and digital‑asset laws.

Overview

  • The country’s five major won-based exchanges recorded a net stablecoin outflow streak that reached 18 consecutive months, with June 2026 showing a net outbound transfer of ₩560.3 billion and cumulative net outflows of about ₩14.9 trillion since January 2025.
  • FSS data cited by multiple outlets show outbound transfers in June totaled ₩2.7625 trillion while inbound returns were ₩2.2022 trillion, producing the monthly net gap that continues the uninterrupted pattern.
  • Regulators and lawmakers say retail traders are converting won into dollar-linked stablecoins and sending them overseas to access high‑leverage derivatives, decentralized finance, staking and tokenized real‑world assets that domestic exchanges do not offer.
  • Domestic markets have weakened as a result: on-exchange stablecoin balances and total virtual assets held have fallen by roughly half, active-user ratios and trading volumes have declined sharply, and liquidity has concentrated at a few platforms.
  • Authorities including the FSS, FSC and Bank of Korea have flagged AML/CFT and FX oversight risks while debating policy responses such as faster rulemaking on stablecoin issuers, a won‑pegged stablecoin proposal, and other measures tied to the government’s won convertibility roadmap and upcoming crypto tax rules.