South Korea’s retail traders pull back from crypto after a string of losses

For years, South Korea has been one of the most active hubs for retail crypto trading. Won-denominated pairs tend to dominate local venues, and bursts of domestic demand have periodically produced a “kimchi premium,” when prices on Korean exchanges trade above global levels.

That mood is now shifting. As Bloomberg reported, Korean social media has filled with posts from traders describing steep losses following a downturn that began in October 2025. One trader said a bet on bitcoin futures cost them about $60,000 and tied the loss to broader personal and financial strain.

The pullback also shows up in trading data. Local outlets citing CoinGecko said combined turnover at the five largest won-focused exchanges totaled about 77.6 trillion won from Dec. 6, 2025 through Jan. 5, 2026, roughly 80% lower than a year earlier, with Upbit showing the sharpest decline. The reporting linked part of the shift to an October “black Saturday” episode marked by widespread liquidations. 

At the same time, money and attention appear to be moving toward equities. With local stock benchmarks rallying, margin loans in South Korea topped 30 trillion won for the first time and set a new high, prompting some brokerages to curb new credit as they watch for signs of overheating. Korea JoongAng Daily reported the figures, citing industry data. 

For the crypto market, the shift suggests a more cautious retail base and less willingness to add leverage quickly. In that environment, price action can become more sensitive to abrupt headlines, and a meaningful return of liquidity may depend on whether volatility eases and confidence rebuilds after a prolonged stretch of losses.