Uncovering the South Korean crypto market
Recently, two traders in the South Korean crypto market have become the focus of discussion due to their stunning performance.
The trader known as Namseokhee (南石熙) is betting on altcoins with high leverage contracts on Binance, increasing his long positions from 75 to 105 in two weeks, with returns skyrocketing from 134 times to 1400 times, while his initial margin was less than $3,000.
Image source: @_FORAB
Another trader, Ohtanishohei (大谷西平), is a staunch ETH fan, continuously increasing his ETH contract long positions over the past two weeks, with profits rising from $1.57 million to a peak of $3.37 million.
Their impressive performance has not only ignited the enthusiasm of South Korean investors but has also drawn the world's attention to this vibrant market in South Korea.
In the past six months, the South Korean market has been mentioned more frequently in the crypto field, and its rise is not coincidental. In 2024, the asset management scale of the five major cryptocurrency exchanges in South Korea surpassed $74.8 billion, with managed assets reaching $73 billion, and the average daily trading volume exceeding that of South Korea's two major stock exchanges.
Upbit, as the largest cryptocurrency exchange in South Korea, once surpassed $10.2 billion in daily trading volume, a year-on-year increase of 94.5%. Even more noteworthy is that the Korean won accounts for as much as 37% of global fiat currency trading against cryptocurrencies, second only to the U.S. dollar.
These figures all indicate that South Korea is not only a hub for crypto trading in Asia but also occupies an increasingly significant market position in the global market.
Betting on altcoins, everyone is trading coins
When it comes to South Korea, many crypto investors may have a poor first impression. In 2022, the Terra project founded by South Korean trader Do Kwon once reached a market value of $40 billion but quickly went to zero due to an algorithmic stablecoin failure, causing South Korean investors to lose over $6 billion. BTC was affected, dropping from $40,000 in early May to $17,000 within two months.
This event led to a 30% drop in trading volume for South Korea's two major cryptocurrency exchanges, Upbit and Bithumb, while the Korean won's share of global crypto trading fell from 40% to 25%. Along with this decline, South Korea's position in the crypto market has also fallen.
As we enter the second half of 2024, several altcoins have seen their prices soar after landing on Korean exchanges, a phenomenon that continues to this day. A few days ago, CYBER went online on the Korean exchange Upbit, with its price soaring more than 130% in a single day, and trading volume surging by 500%, reaching a market value of over $170 million.
This data reflects that the enthusiasm of South Korean crypto investors may far exceed our imagination, which can also be confirmed by the composition of South Korean crypto investors' data.
According to the latest report from Korea Economic Research Institute (Investment Trends of Virtual Assets for Ages 20-50), among 1,000 financial investors aged 20-50, 27% hold cryptocurrencies, accounting for 14% of their total financial assets, and as many as 70% of respondents expressed a willingness to invest in cryptocurrencies in the future.
The craze for cryptocurrencies among South Koreans goes far beyond this. According to data from the Bank of Korea in 2024, by November 2024, 30% of South Korean residents had opened cryptocurrency exchange accounts, and two out of ten government officials hold cryptocurrencies.
Behind South Korea's phenomenon of 'everyone trading coins' lies the current social background and the government's changing attitude towards cryptocurrencies.
Currently, young people in South Korea are facing unprecedented social pressure.
According to data released by the Korean Statistical Office, the youth unemployment rate in South Korea reached 5.5% in July 2025. Young South Koreans generally have a pessimistic outlook on the economy, and with almost all upward promotion channels completely blocked, countless young people in South Korea see cryptocurrencies as the only opportunity for class leap.
This also explains why South Korean crypto traders’ trading strategies generally lean towards high leverage trading; certain classic lines from popular culture in Korea also reflect this social phenomenon.
Popular Korean TV series (Squid Game 2)
Regarding the South Korean government's attitude towards the crypto market, the biggest positive news for South Korean traders recently is Lee Jae-myung's election as President of South Korea.
Lee Jae-myung is not only a winner in politics but is also one of the staunchest advocates for South Korea's crypto policies. He pointed out in his commitment to the "Korean crypto industry" that he will promote the legalization of virtual asset spot ETFs and guide the allocation of crypto assets in the national pension funds, as well as construct a won stablecoin.
The attitude behind these messages all points to a common result: South Korea is making a 'comeback' in the crypto market, and this storm may be even more intense than before.
Tom Lee, the new Do Kwon of South Korea?
The 'comeback' of the South Korean crypto market is not only reflected in policy statements but also in the actual actions of Korean forces buying in. The 'watch list' of South Korean investors often includes the following targets:
ETH
In the South Korean crypto market, the crypto gold here is not BTC but ETH.
According to data from South Korea's two major cryptocurrency exchanges, Upbit and Bithumb, in the past 24 hours, the ETH/KRW trading pairs occupied the top trading volume positions at 18.06% and 12.1%, with a total trading amount exceeding $1.26 billion. Furthermore, Upbit alone achieved an astonishing trading volume of $111.1 billion in ETH just in July.
This is inseparable from the fact that Tom Lee, the chairman of the board of BitMine, which holds the most ETH, and who is also a Korean-American, continues to shout orders, injecting confidence into South Korean crypto traders.
With a mix of national sentiment, media promotion, and the crypto label, Tom Lee is currently regarded by South Korean crypto traders as a presence comparable to that of LUNA founder Do Kwon back in the day. Even legendary trader Eugene has mentioned Tom Lee in the community.
@_FORAB
BMNR
In addition to ETH, Tom Lee's importance in the eyes of South Korean traders is also reflected in the stock BMNR of the ETH microstrategy company BitMine.
As of August 15, BitMine held more than 1.2 million ETH, worth $5.3 billion, more than double the second place SharpLink's ETH holdings. According to data from the Korea Securities Depository, since July, South Korean retail investors have cumulatively net bought over $259 million of BMNR, making it the most popular foreign security during the same period.
In the eyes of countless South Korean traders, BitMine has already become the operator controlling ETH's rise, while the U.S. stock target BMNR has become the leveraged ETH. Compared to ETH, BMNR has risen by as much as 66% since July 1, which also better fits the high-risk preference of South Korean crypto traders.
XRP
Besides ETH, XRP is also a major target favored by South Korean crypto investors. In the past 24 hours, the total trading volume of XRP on Upbit and Bithumb reached $1.13 billion, just $100 million shy of ETH.
On May 26, the XRP/KRW trading pair surpassed BTC and ETH in the Korean market. Even more crazily, at that time, the XRP price on Upbit soared to $265 million, exceeding the international market price by 3%.
On the other hand, the XRP reserves held by Upbit, South Korea's largest cryptocurrency exchange, exceed 5.9 billion, nearly double that of Binance. Behind this crazy phenomenon, the SEC's withdrawal of allegations against XRP's securitization and its cross-border payment potential is attracting South Korean investors, while the Korean won stablecoin policy further boosts demand, with retail investors generally optimistic about XRP's subsequent potential.
Return to the cryptocurrency stage
Driven by popular targets like ETH, BMNR, and XRP, the South Korean crypto market is making a remarkable return to the crypto stage at an astonishing speed. From retail to institutions, from policy to culture, South Koreans seem to have regarded cryptocurrencies as a new engine for national development. However, this 'everyone trading coins' phenomenon and high leverage trading strategies are not without concerns.
Just yesterday, August 14, after the U.S. released the PPI data, the crypto market plummeted. The position of Namseokhee, who had placed heavy bets during the previous upward trend, has turned from profit to loss, even experiencing the largest historical loss. Although such extreme trading strategies are not worth advocating, the enthusiasm of South Korean crypto traders cannot be ignored.
@_FORAB
In short, the South Korean crypto market is making a strong comeback from the "Terra shadow," becoming a force that global investors cannot ignore. In the near future, with the popularization of the Korean won stablecoin and the further implementation of pro-crypto policies, we are likely to see South Korea rise to the status of "Asia's crypto capital."
This article is cooperatively reprinted from: Deep Tide
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