USD Coin Market Faces 560 Billion Won Korea Outflow

Crypto News

South Korea's dollar stablecoin market recorded a net outflow of 560.3 billion won in June, as withdrawals to overseas platforms exceeded deposits for an 18th straight month, regulatory data submitted to the National Assembly showed. Outbound transfers from the country's five won-denominated exchanges totaled 2.76 trillion won, while inflows reached 2.20 trillion won, leaving a gap equivalent to 77.6% of domestic investors' net overseas stock purchases in the same month. Dollar-backed tokens such as USD Coin (USDC) are increasingly being moved beyond local spot markets to access derivatives, dollar-denominated real-world asset products, decentralized finance and staking services. Offshore platforms have expanded Bitcoin-linked derivatives and products tied to Korean blue-chip equities, giving stablecoins a routing function rather than a mere payment role for cross-border transfers. The April-to-June period reinforced that pattern, with net stablecoin outflows reaching 1.69 trillion won even as local investors adjusted overseas equity positions. Unlike algorithmic stablecoins, these fiat-pegged assets rely on reserve backing and banking relationships, which makes their movement a useful signal for capital seeking yield, leverage or settlement efficiency. The data suggests Korean retail and professional demand is not leaving digital assets altogether, but is shifting toward offshore venues where product depth and 24-hour liquidity are broader.

The same regulatory dataset shows a sharper competitive break inside Korea's exchange sector. Coinone's daily average stablecoin turnover reached 84.58 billion won in June, giving it a 34.8% share and placing it ahead of Bithumb at 31.1% and Upbit at 30.1%. The three platforms accounted for 96% of stablecoin trading among the five won exchanges, while Korbit held 3.9% and Gopax 0.06%. Coinone's advance marks a steep change from January 2025, when its share was only 1.8%, and from December, when it had already climbed to 30.5%. The main catalyst was a zero-fee policy for USD Coin trading introduced in October 2025 and maintained while rivals generally charged between 0.04% and 0.20%. This is a trading-cost subsidy, not an airdrop, but it has redirected order flow quickly because stablecoin execution is highly sensitive to fees. Upbit has responded with a limited-time waiver of its own. Across the broader crypto market, however, Upbit still controlled 60% of total daily trading in June and Bithumb 32%, leaving Coinone at 6.2% and showing that altcoin liquidity beyond stablecoins remains concentrated on the larger venues. That split matters because stablecoins often serve as collateral for offshore leverage, so a fee-driven share gain can precede wider customer migration.

Korea's technology groups are already positioning for a won-denominated stablecoin framework as lawmakers revive work on a digital asset basic law. Naver is pursuing a comprehensive share swap that would place Dunamu, the operator of Upbit, under Naver Financial, combining search, commerce and payment rails with blockchain distribution. Hana Bank's acquisition of a 6.55% stake in Dunamu points to a broader value chain spanning issuance, custody, trading, tokenized finance products and card payments. Kakao is taking a consortium route through KakaoPay and KakaoBank, inviting major commercial banks while also signing a memorandum of understanding with Circle to connect with global dollar stablecoin infrastructure. The strategic logic is usage rather than issuance alone: with Tether and Circle controlling about 90% of the global market, a Korean entrant would need embedded payment, remittance and commerce channels to gain traction. Regulatory timing remains the constraint. Fair Trade Commission review of the Naver-Dunamu combination has delayed the transaction calendar, and a pending special financial information act decree could tighten major-shareholder eligibility for crypto operators. Those rules will shape whether platform-led or bank-led alliances capture the first compliant won stablecoin networks. The outcome may determine whether domestic payment groups or foreign issuers set Korea's on-chain settlement standards.

COINOTAG's reading ties these developments to a single theme: stablecoins are becoming the routing layer for Korean crypto demand. While the Fear and Greed Index sits at 27 out of 100, indicating fear, Bitcoin accounts for 69.7% of our tracked market and the COINOTAG-tracked market capitalization stands at $1.81 trillion, far below its all-time-high zone. In that setting, exchange fee wars and platform alliances are not peripheral promotions; they are attempts to control settlement flow before formal rules arrive. Regulatory filings and corporate disclosures show the contest is moving capital, market share and infrastructure planning. If won stablecoin legislation lags, Korea's dollar-token demand may continue migrating offshore, while domestic issuers compete for a framework that has not yet been finalized.