Cryptocurrency in South Korea

Cryptocurrency is a big deal in South Korea, where millions of people are buying, trading, and using it every day. South Korea loves technology and innovation, and crypto fits right in. It started as a trend among tech fans, but now even regular people and big companies are jumping on board. The country’s history of embracing new tech, like fast internet and mobile payments, has made crypto super popular. With a $823.4 million revenue growth in 2025, the South Korean government is laying out proper taxation and regulation for future crypto trading.

Basic Crypto Scene in South Korea

In South Korea, about 15.6 million (almost 30% of the population) own some kind of cryptocurrency. Crypto trading is legal in South Korea, but it cannot be used as legal tender to pay off debts or make big purchases. The South Korean population uses crypto for investing (hoping prices go up), trading on apps, and even for small payments. Some also use it to send money abroad because it’s fast and cheap.

Big moments like Bitcoin hitting new highs in 2024 and companies like Samsung adding crypto wallets to their products have made crypto a hot topic. The government is also stepping in with new rules to keep things safe.

Overall Crypto Market

The crypto market size of South Korea is worth around $823.4 million in 2025, and it’s growing fast. Every month, about 100,000 new people start investing!

Popular cryptocurrencies like Bitcoin are the king (21% of portfolios), followed by XRP (16%), Ethereum, which is the favourite of most Koreans, Pi, Compound, and Dogecoin. South Koreans love these coins for trading and holding.

Key major local exchange players like Upbit and Bithumb are massive, handling $10 billion in trades daily. Global players like Binance are popular too. Influencers on YouTube and Telegram also guide people on what to buy.

Crypto Regulation in South Korea

The government is careful but open. They want to protect people from scams while letting crypto grow. Crypto is legal, but there are strict rules. The Virtual Asset User Protection Act (started in 2024) ensures exchanges keep user money safe and stop bad trading tricks. The Financial Services Commission (FSC) and Korea Financial Intelligence Unit (KoFIU) watch over everything.

South Korea delayed a 20% tax implementation from 2023 to 2025, to 2027, because the market is still shaky. They’re also planning new laws for cross-border crypto trades by late 2025. Experts think more rules are coming, like letting banks handle crypto or allowing Bitcoin ETFs (exchange-traded funds) to make investing easier.

Crypto Exchanges & Platforms in South Korea

Most crypto traders in South Korea use the biggest local exchanges like Upbit and Bithumb for daily trading in billions. Binance is also a favorite for its variety of coins. Local platform Upbit, started by Dunamu, leads with a user-friendly app. Bithumb is great for fast trades. Both work with Korean banks for real-name accounts.

These platforms are easy to use, with low fees (around 0.1-0.25%) and strong security like cold wallets. Payments can only be made with Korean won (KRW) via bank transfers. Rules make exchanges safer but stricter. They need to follow KYC (Know Your Customer) and AML (Anti-Money Laundering) laws, and every trader has to verify their identity.

Cryptocurrency Wallets in South Korea

People in South Korea use two types of wallets: hot wallets (online, like apps) for quick trades and cold wallets (offline, like USB drives) for safety. Hardware wallets like Trezor are also popular. Many stick to exchange wallets (like Upbit’s built-in one), but serious investors use global options like MetaMask or Trust Wallet.

Samsung’s blockchain wallet is a hit too among Korean netizens. Hacking is a serious security concern, as some exchanges got hit in the past. Phishing scams also trick people into giving away their keys. Wallet providers like Samsung Blockchain Wallet, MetaMask, Trust Wallet, and hardware like Ledger are widely used.

Crypto Taxation in South Korea

Right now, there’s no tax on crypto profits, but that’s changing. Starting in 2027, if the tax regulation is implemented, traders will need to pay 20% on crypto gains. After tax regulation implementation, every crypto trader needs to tell the tax office about their crypto earnings every year. The 20% rate applies to trading, mining, or staking profits. Smaller gains (under 2.5 million won) won’t be taxed. Challenges people face while filing taxes include how to track profits since crypto prices jump around. The government is still figuring out how to collect taxes smoothly.

Crypto Community & Education in South Korea

Most South Koreans know about crypto—45% of working-age people own some. Young folks (20s and 30s) are the biggest fans of the trending investment tool. Events like Blockchain Week in Seoul bring thousands together to learn and network. Smaller meetups happen in cities, too.

Many YouTube channels, Telegram groups, and sites like CoinMarketCap teach people the basics. Local universities also offer blockchain courses. Notable figures like CEO Ki Young Ju of CryptoQuant are pushing for better rules. Influencers on social media share tips daily.

Crypto’s Future in South Korea

Experts say the market could hit $823.4 million by 2025 and grow to $100 billion by 2030 as more people and companies join in. If the government allows ETFs and bank involvement, crypto could boom. But too many rules might slow it down. Meanwhile, South Korea’s tech giants (Samsung, LG) are building blockchain tools, and the Bank of Korea is testing a digital won (CBDC) in 2025. This could make crypto even bigger.

Conclusion

South Korea is a crypto hotspot. With busy exchanges, millions trading, and big tech like Samsung leading the way, digital money is thriving. The government is continuously trying to keep it safe with rules, and a digital won is coming soon. South Korea's crypto market future is solid and exciting, perfect for newbies and experts alike.

Frequently Asked Questions (FAQs)

1. How do I start trading crypto in South Korea?

2. Is crypto safe here?

Using trusted exchanges to keep the keys secure.

3. What’s the “Kimchi Premium”?

It’s a phenomenon when there is a higher price of crypto than global prices due to high demand.

4. How much is taxed on crypto gains?

Still, no clear taxes have been set up, maybe from 2027 taxes will be levied.

5. What’s staking?

It’s a process of locking cryptos to earn rewards in return.

6. Which is the safest wallet?

Samsung’s wallet or MetaMask for ease and safety.

7. Is crypto used to buy stuff?

Some stores accept it, but it’s mostly for trading.

8. Why is XRP popular here?

It’s fast and cheap for transfers, loved by traders.

9. Are foreign exchanges legal?

Yes, like Binance, but they must follow local rules soon.

10. What happens if anybody loses the wallet key?

Losing wallet keys means losing crypto forever—keep it safe!