Retail Investors Support South Korea's Crypto Market as Corporate Accounts Remain Unopened

South Korea ranks among the top globally in crypto trading, yet corporate accounts are still not opened, leading demand to shift overseas.

Written by: Tiger Research
Compiled by: AididiaoJP, Foresight News

Key Conclusions

South Korea's crypto market transaction volume is among the highest globally, but regulatory restrictions prevent corporate participation, leaving demand heavily reliant on retail investors. Once corporate accounts are opened, the demand base will significantly broaden, allowing the market to enter the next phase.

It is estimated that by 2030, the upper limit of crypto assets held by South Korean companies could reach 82 trillion KRW. Businesses such as trading, custody, and prime brokerage could contribute approximately 570 billion KRW in annual revenue.

If the opening continues to be delayed, South Korea's demand and business opportunities will be pushed overseas. Signs of outflow have already appeared in the payment and asset management sectors. Once overseas markets establish customer relationships and operational experience, even if South Korea opens up, related businesses may not necessarily return.

Lack of Institutional Participation Poses Growth Ceiling for South Korea's Crypto Market

South Korea is one of the most active crypto markets globally. In terms of fiat currency, the Korean won has contributed about 30% of global crypto trading volume in recent years, second only to the US dollar; at peak times, the share exceeded 50%, at one point surpassing the dollar. Given South Korea's population and economic size, this level of activity is unusual.

However, the domestic crypto industry has not grown in tandem. The valuation gap between South Korea and major global crypto companies clearly reflects this disparity. While direct comparisons have limitations due to differences in capital market sizes and business scopes, the gap remains significant. South Korea's largest crypto company, Dunamu (operator of Upbit), is valued at about one-seventh of Coinbase.

The South Korean market is supported by retail investors, while regulations keep small and medium enterprises at bay. The structure of the US market is different: institutional investors account for over 80% of Coinbase's trading volume, forming the market's foundation. Although South Korea has achieved considerable trading volume, corporate demand is largely absent, making it difficult for the industry to advance to the next stage.

Corporate Account Openings Delayed Again, 82 Trillion KRW Market Remains on Paper

The progress of corporate account openings has fallen behind the original plan. In 2025, the South Korean Financial Services Commission planned to first allow about 3,500 listed companies and registered professional investment firms to trade crypto assets for investment purposes, followed by phased openings. The first phase has yet to start, and there is no timetable for broader corporate access. As a result, corporate funds still find it difficult to enter the South Korean crypto market.

Once corporate accounts are opened, the demand side will significantly broaden. Based on the managed assets of private financial institutions and public funds such as pensions, and referring to the allocation ratios in more mature markets like the US in 2027, the upper limit of South Korean corporate crypto asset management could reach about 16 trillion KRW.

As the number of corporate participants increases, the market can continue to expand. Starting in 2028, the model will account for both asset expansion and higher allocation ratios: private financial institutions are calculated at a 5% investment cap as discussed in South Korea, while public funds are more conservative at 2%. Under this assumption, the corporate crypto asset management scale could reach about 35.2 trillion KRW in 2028, approximately 57.1 trillion KRW in 2029, and an upper limit of 82 trillion KRW by 2030. This is the potential market upper limit, and the actual scale will still depend on regulatory pace and market conditions.

Financial Services for Corporates: Annual Revenue of Approximately 570 Billion KRW

Once corporations enter the market, it will not remain solely at the trading level. Large orders require stable execution, assets need secure custody, and treasury and risk management must be conducted. Services such as custody and prime brokerage will develop accordingly, no longer relying solely on centralized exchange fees.

Referring to overseas corporate market revenue models, by 2030, if corporate asset management reaches 82 trillion KRW, the annual revenue could be around 570 billion KRW, including trading fees, as well as custody, execution, and treasury management income.

The larger the corporate asset scale, the stronger the demand for such services. Custody, prime brokerage, and other corporate services are expected to provide new revenue sources for the South Korean crypto industry beyond retail trading fees.

Beyond Investment: The Industry Chain is Expected to Extend

Corporate accounts not only serve investment trading but also companies conducting business with crypto assets. Stablecoin payments and remittances are the most direct examples. Such businesses require companies to trade crypto assets directly and settle in KRW. Restrictions on corporate trading in South Korea also suppress related businesses.

Overseas, a number of payment and settlement infrastructure companies have emerged, such as Rain, BVNK, and Mesh. The valuation standards for listed companies and private companies differ, making direct comparisons inappropriate, but several companies in this sector have valuations reaching trillions of KRW.

Once corporate accounts are opened, South Korea may also develop similar businesses. Payment and fintech companies can engage in crypto payments and remittances, while other companies can use crypto assets for payments and settlements. The South Korean crypto industry will have the opportunity to expand from a "trading market" to an "application market."

Corporate Participation is Necessary for Liquidity to Match Trading Volume

High retail participation has boosted South Korea's trading volume, but the capacity to handle large orders remains weaker than major global exchanges. Recent calculations of Bitcoin spot trading show that a 10 billion KRW order incurs a round-trip slippage of 213.2 basis points across South Korea's three major exchanges; under the same conditions, Binance only incurs 12.2 basis points. The larger the order, the more pronounced the difference.

This indicates that the depth of the South Korean market does not match its trading volume. Trading is active, but the order book may not be thick enough to handle large orders, and price impacts will increase with order size. High trading volume does not equate to the ability to execute large transactions.

Corporate accounts can help optimize the participant structure and attract professional liquidity providers. As the order book thickens, the price impact and trading costs of large orders will decrease, potentially improving trading efficiency for both corporations and retail investors.

The Later the Opening, the More Opportunities Will Land Overseas

The delay in opening corporate accounts has already led domestic demand to shift abroad. Allium data shows that from January 2021 to September 2026, B2B stablecoin payments between South Korea and other countries amount to approximately 620 million USD. This data excludes centralized exchange deposits and withdrawals and investment transactions, only counting payments for goods and services. This indicates that companies have already been using stablecoins for payments and settlements beyond investment.

A significant portion of demand has already fallen overseas. Some import and export companies find it difficult to handle stablecoins in South Korea and resort to overseas entities or partners in places like Hong Kong for exchanges and settlements. Hyperithm provides crypto asset management for corporate clients in Japan, and in the future, asset securitization will expand digital asset business in Hong Kong. South Korea's demand and business capabilities have already been transformed into business in overseas markets with more complete regulatory frameworks.

If this trend continues, companies going overseas will accumulate not only customers and revenue but also business relationships and operational experience. Once payment networks and business relationships are established overseas, even if South Korea opens up later, these activities may not quickly return. Companies will also be more willing to continue investing in markets where they have accumulated customers and experience. Delaying corporate accounts not only postpones the time for funds to enter but may also allow businesses that should have grown in South Korea to take root overseas first.

Next Steps: Open Corporate Accounts

The significance of corporate accounts is not just to bring company funds into the crypto market but may also give rise to a new financial services market. As mentioned earlier, by 2030, the upper limit of corporate crypto asset management could reach about 82 trillion KRW, with annual revenues from trading, custody, and prime brokerage of approximately 570 billion KRW. Once corporate funds enter, the demand for trading, custody, and asset management will also rise.

The impact may also spill over beyond financial services: payments, remittances, accounting, taxation, security, anti-money laundering, and data services may all see growth as companies use crypto assets. The key is whether these opportunities remain in South Korea. If they stay domestic, South Korean companies can retain revenue and operational experience; if trading remains domestic, capital flows can be better tracked, and taxation and market regulation can be more effectively enforced.

South Korea does not lack trading volume and demand; what it lacks is the ability for companies to enter the market. Demand is blocked at the retail level, making it difficult for financial services and related industries to grow. If corporate accounts can be established, existing demand can meet industry expansion, allowing the market to transition from a "retail market" to one where corporations and industries can also participate.