$USDC Key conclusions:

Stablecoins drove 47% of cryptocurrency outflows in Q1 from South Korea.

Foreign exchanges prefer dollar-pegged stablecoins over pairs in Korean won.

South Korean voters rank cryptocurrency reform as a major election issue.

South Korea's major cryptocurrency exchanges transferred approximately 56.8 trillion won in cryptocurrencies abroad during the first quarter of 2025. Dollar-pegged stablecoins, such as USDT and USDC, accounted for 26.87 trillion won or 47.3% of this total.

Traders prefer stablecoins because they provide price stability and facilitate access for South Korean traders to foreign cryptocurrency markets like Binance and Bybit, where most trading pairs are listed in dollar-based stablecoins instead of 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 main platforms handling these transfers between January and March 2025.

Money also flowed in both directions.

During the same period, 64.78 trillion won flowed into domestic exchanges, more than the amount sent abroad. About 26.9 trillion won in stablecoins was brought into the country. This shows a bidirectional movement, not just an outflow.

The South Korea stablecoin report reflects . .