SEOUL, Oct. 7 (Korea Bizwire) — The value of U.S. dollar–pegged stablecoins held by South Korea’s major cryptocurrency exchanges has more than doubled over the past year, underscoring the rapid expansion of digital asset trading — and prompting renewed concerns over unmonitored capital flows.
According to data submitted by the Financial Supervisory Service to Rep. Choo Kyung-ho of the National Assembly’s National Policy Committee, the combined holdings of dollar-based stablecoins — including USDT, USDC, and USDS — at the country’s five largest exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) reached US$365.4 million as of the end of August. That figure marks a 121 percent increase from US$163.9 million a year earlier.
The tally excludes stablecoins stored in private wallets, meaning the actual amount circulating within the domestic market is likely higher.
Between January and August, inflows and outflows of stablecoins at local exchanges each totaled around 63 trillion won (US$46 billion) — up roughly 33 percent compared with the entire volume recorded for 2024.
While the data reflects overall trading activity, including transfers between domestic exchanges, analysts warn that it obscures the true scale of cross-border capital movement.
As the United States accelerates efforts to formalize stablecoin regulation, trading volumes in South Korea have climbed sharply, prompting concerns that these assets could become a loophole in foreign exchange oversight.
In a recent report, Lee Jeong-du, senior research fellow at the Korea Institute of Finance, noted that much of the local demand for stablecoins stems from offshore crypto trading and remittance needs. “Significant amounts of capital may be moving abroad through dollar-pegged stablecoins without passing through the official foreign exchange monitoring system,” he wrote, calling for tighter regulation and enforcement to curb opaque transactions.
The South Korean government and ruling party have launched a Digital Asset Task Force to explore new legislation, including the possible introduction of a won-backed stablecoin and a clearer regulatory framework for foreign-issued tokens traded domestically.
“Legal frameworks must evolve in step with the rapid growth of the stablecoin market,” Rep. Choo said. “At the same time, safeguards against capital flight and exchange rate volatility must be firmly established to ensure a stable and transparent market.”
M. H. Lee (mhlee@koreabizwire.com)
