South Korea’s crypto trading volume falls 28% YoY in Q1 as retail investors chase AI stocks

South Korea's retail crypto trading volume fell 28% year over year to $69 billion in Q1 2026, the steepest decline among major global markets, as retail investors shifted to AI-driven semiconductor stocks that nearly tripled the KOSPI index. The drop more than doubled the global average contraction of 11%, pressuring major exchanges like Upbit and Bithumb to diversify.

South Korea’s crypto trading volume falls 28% YoY in Q1 as retail investors chase AI stocks The world's second-largest retail crypto market saw its steepest decline among major economies, with investors pivoting to semiconductor equities that nearly tripled in value South Korea’s retail crypto traders, long among the most active in the world, pulled back hard in the first quarter. Trading volume dropped roughly 28% year over year to approximately $69B, according to TRM Labs’ Q1 2026 Global Crypto Adoption Index. That’s the steepest decline among major global crypto markets. The AI trade ate crypto’s lunch The KOSPI index, South Korea’s benchmark stock market gauge, surged 196% year over year. The primary driver was AI-driven semiconductor stocks, an area where South Korean companies like Samsung and SK Hynix have massive exposure. The broader global crypto market experienced an 11% year-over-year contraction in retail trading volume, bringing the worldwide total to $979B. South Korea’s 28% drop is more than double the global average decline. CoinGecko data shows average monthly KRW-denominated exchange volume fell 21.7% across the five major domestic platforms, including Upbit and Bithumb. Still second place, but the gap is growing Even with the decline, South Korea held its position as the world’s second-largest retail crypto market. The US led the pack with $212B to $213B in trading volume, roughly three times Korea’s figure. Behind South Korea, Russia came in at approximately $48B and India at around $46B. For crypto exchanges operating in South Korea, lower volume means lower fee revenue. Upbit, which has historically dominated Korean crypto trading, and Bithumb both face pressure to diversify their offerings or find new growth levers. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .