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South Korean Crypto Holdings Fall to $41 Billion as Investors Shift to Stocks

Chosun Ilbo said South Korean crypto holdings fell from 121.8 trillion won to 60.6 trillion won as investors favored stocks, while revised AML rules due in August and a 22% crypto gains tax from January 1, 2027 added pressure.

Fact Check
The core claim is strongly supported by multiple independent sources. The Cointelegraph article (May 10, 2026) directly cites the Chosun Daily (Chosun Ilbo) as its primary source and confirms the exact figures: a drop from 121.8 trillion won to 60.6 trillion won (~$41.4 billion). The crypto.news article independently corroborates the ~$41.4B figure and the ~50% decline, citing Financial Services Commission data. The PANews article (citing Cointelegraph) also confirms the same numbers. The claim's attribution to Chosun Ilbo is accurate per the Cointelegraph sourcing. Minor discrepancies exist: the claim says '22% tax' while crypto.news says '20% tax on gains above 2.5 million won' and Cointelegraph says '22% crypto tax' — this likely reflects different components of the same tax regime. The claim slightly simplifies the timeline (January 2025 to February 2026 per Cointelegraph vs. March 2025 to March 2026 per crypto.news), but the overall narrative and headline figures are consistent and well-sourced.
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Summary

South Korean investors’ crypto holdings fell to 60.6 trillion won ($41.4 billion) in February 2026 from 121.8 trillion won over the prior year, according to figures cited by Chosun Ilbo. Daily trading volume across the country’s five exchanges dropped from $11.6 billion in December 2024 to $3 billion in February 2026, underscoring a sharp slowdown in market activity. The report linked the decline to capital shifting into stocks, while revised anti-money laundering rules are set to start in August and a 22% crypto gains tax is scheduled to begin on January 1, 2027.

Terms & Concepts
  • AML (anti-money laundering): Rules and compliance measures aimed at preventing illicit funds from moving through financial systems, including crypto exchanges.
  • Crypto gains tax: A tax imposed on profits earned from selling or trading digital assets at a gain.
  • Exchange trading volume: The total value of assets traded on an exchange over a set period, often used as a measure of market activity and liquidity.