South Korea’s Stablecoin Flood Swells to $19B, 47% of Q1 Crypto Outflows

South Korea USDT

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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May 7, 2025

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South Korea’s top crypto exchanges transferred around 56.8 trillion won (USD $40.4 billion) worth of cryptocurrencies overseas during the first quarter of 2025. Stablecoins pegged to the U.S. dollar, such as USDT and USDC, made up 26.87 trillion won (USD $19.1 billion) or 47.3% of this total.

Traders prefer stablecoins because they offer price stability and make it easier for South Korean traders to access foreign crypto markets like Binance and Bybit, where most trading pairs are listed in dollar-based stablecoins rather than Korean won (KRW).

Is South Korea Ready to Regulate Stablecoins?

According to a local news report on May 8, South Korea’s Financial Supervisory Service (FSS) identified Upbit, Bithumb, Coinone, Korbit, and Gopax as the leading platforms handling these transfers between January and March 2025.

Money also flowed both ways.

During the same period, 64.78 trillion won (USD $46.1 billion) entered domestic exchanges, higher than the amount sent overseas. Around 26.9 trillion won (USD $19.1 billion) worth of stablecoins were brought into the country. This shows a two-way movement, not just an outflow.

South Korea’s stablecoin report mirrors global patterns. For instance, in November 2024, Brazil’s Internal Revenue Service reported that nearly 4.4 million Brazilians transferred $4.2 billion in cryptocurrency during September.

Stablecoins made up 71.4% of this volume, with Tether’s USDT alone representing $2.77 billion. Amid this spike in interest, Itaú Unibanco, Brazil’s largest bank with over 55 million users, now considers launching a stablecoin.

The Trump family also entered the market. They introduced a private stablecoin, USD1, through their venture, World Liberty Financial, and within two months of launch, it has become the seventh-largest stablecoin globally, with a market capitalization of $2.12 billion.

Stablecoin growth has also reached new heights. For example, in March 2025, its total market value surpassed $230 billion. At press time, it stands at $242.222 billion, up $157.28 million over the past week.

Meanwhile, a consortium of South Korean banks plan to create a joint Korean stablecoin. This group includes KB Kookmin, Shinhan, Woori, NH Nonghyup, IBK Industrial, Suhyup, and the Korea Financial Telecommunications & Clearing Institute (KFTC).

However, South Korea still lacks specific regulations for stablecoins, though plans are underway to establish them later this year.

This is symbolic of the stablecoin market maturing, since the failed Terra stablecoin project, which originated in South Korea, led to a major market downturn and serves as a cautionary tale for what can happen when such projects are left to their own devices.

Will South Korea’s Crypto Boom Continue With Election Crossroads?

South Korea’s crypto adoption is high. A recent survey found that over half of South Korean adults have previously traded or are still actively trading cryptocurrencies.

This comprehensive study involved 2,500 men and women, aged 19 to 69, living across Seoul, Gyeonggi Province, and six other major cities. About 52% reported profits from crypto activities. Bitcoin ranked highest in popularity, capturing 76% of participants’ attention.

In March, local news agency Yonhap added another layer to the story. It reported that 16.29 million South Koreans has registered accounts with crypto exchanges. Out of a population of 51.7 million, that’s nearly one in three people.

These accounts span South Korea’s top five crypto exchanges, including Upbit, Bithumb, and Gopax.

Meanwhile, crypto policies could be a major decider in South Korea’s upcoming presidential election, which is scheduled for June 3, 2025.

The nation’s presidential candidate, Lee Jae-myung, promises to reduce crypto transaction fees and support the approval of Bitcoin spot ETFs if elected.

Right now, South Korean exchanges are allowed to set their transaction fees. However, Lee’s administration might push for capped fees, potentially making trading more affordable.

Lee’s statements counter his main opponent, Kim Moon-soo of the ruling People Power Party (PPP).

Earlier this month, Kim proposed allowing South Korea’s state pension and sovereign wealth funds to invest directly in digital assets.

His political party also introduced seven crypto-centered promises, including removing strict banking rules that currently hinder crypto exchanges.

If enacted, this would open more doors for local and foreign traders and further elevate the South Korean crypto market.

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