Rich by Coin

Stablecoin balances on South Korea’s five major cryptocurrency exchanges have declined by approximately 55% since July 2025, falling from $575 million to about $188 million by mid-March. The outflow accelerated after the won weakened past the $1,500 mark in mid-March, as investors swapped stablecoins for won and redirected funds to domestic assets. This shift aligns with a broader retreat of retail funds from crypto toward the stock market.

Policy incentives such as government-backed repatriation accounts encourage reinvestment by offering up to 100% capital gains tax exemption when selling overseas assets and bringing proceeds home. The Korea Composite Stock Price Index has already surged about 75% through 2025 and could climb further this year, suggesting domestic equities remain a growth draw for investors. Analysts caution that the liquidity decline in South Korea’s crypto market reflects domestic capital rotation rather than a regional withdrawal, and future inflows will hinge on the stock market rally’s sustainability.