Koreans have stopped trading crypto! Trading volume is only 8% of KOSPI, kimchi premium turns negative

South Korea's crypto trading volume on the five major won-denominated exchanges, measured as a ratio to KOSPI, has plunged from 323% during the Trump rally in December 2024 to just 8% in May 2026 — a more than 40-fold contraction over 18 months. During the same period, won-denominated crypto trading volume fell 71%, while KOSPI surged 243%. The kimchi premium has remained negative since March, and Korean retail investors are accelerating their exit from the crypto market. (Background: Upbit trading volume plunges 80% — even Koreans have stopped trading crypto?) (Context: South Korean crypto trading volume "surpasses the stock market," and the Bitcoin kimchi premium breaks 100 million won) Key Highlights - The ratio of South Korean crypto trading volume to KOSPI plunged from 323% in December 2024 to just 8% in May 2026 - Won-denominated crypto trading volume has evaporated 70% since August last year, while KOSPI trading volume surged nearly 2.5x in the same period - The kimchi premium has remained negative since March — historically only seen during the Terra-Luna and FTX collapses The numbers are brutal. South Korea's crypto trading volume relative to the stock market was 323% last year, and only 8% remains this year! It has shrunk 40-fold in 18 months, and the era of Korean retail investors frantically trading crypto is gone for good. Korean media outlet *Digital Asset* tracked trading volume changes across the five major won-denominated exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax). The crossover between crypto and the stock market began last autumn. In August 2025, crypto trading volume was still neck-and-neck with KOSPI (ratio of 99%), but the two diverged completely over the following two months: an October wave of futures liquidations crushed the crypto sector, while semiconductor stocks soared and pushed KOSPI to new highs. Since then, won-denominated crypto trading volume has evaporated 70%, while KOSPI has conversely surged nearly 2.5x. KOSPI's rebound has been astonishing. Early in the year it plunged 20% amid geopolitical turmoil and triggered two circuit breakers, but driven by a semiconductor super-cycle led by Samsung and SK Hynix, it climbed from the trough to an all-time high in under four months. This V-shaped reversal completely diverted Korean retail attention away from crypto. Dunamu's latest earnings report directly confirms this retreat. The Upbit parent company posted Q1 revenue of 234.6 billion won, down roughly 55% year-on-year, with operating profit plunging 78%. Korean retail's risk appetite hasn't disappeared — it has just shifted targets. Rather than discussing altcoins on Kakao Talk, they are now chasing AI semiconductor stocks. On a global view, the retreat of Korean retail is equally evident. CryptoQuant's Bitcoin "kimchi premium" indicator — used to measure the price gap between the Korean market and international markets — turned negative in March, briefly returned to positive in April, and has since fallen back into negative territory. A negative kimchi premium means domestic BTC prices in South Korea are lower than on overseas exchanges, indicating extremely weak buying pressure. Historically, such a situation has been quite rare, previously appearing only during the Terra-Luna collapse in June 2022 and the FTX implosion in November. Months of consecutive negative readings signal not just a retreat in speculation, but a fundamental shift in the structure of buy-side demand in the Korean market. It's not that Koreans have stopped gambling — they've just switched tables. The bitter story of Korean youth chasing quick profits could fill another long article. FAQ What is the current ratio of South Korean crypto trading volume to KOSPI? As of May 26, 2026, it stands at just 8%, a more than 40-fold plunge from the December 2024 peak of 323%. The main causes are the crypto market crash in October 2025 and KOSPI's repeated record highs driven by the semiconductor industry. What does a negative kimchi premium indicate? It indicates that domestic Bitcoin prices in South Korea are lower than on overseas exchanges, reflecting extremely weak buying pressure. CryptoQuant data shows the indicator has been continuously negative since March — historically only seen during the Terra-Luna collapse and the FTX implosion.