South Korea's stablecoin balance fell 55%, stock market buying warmed up, cryptocurrency liquidity shrank sharply

On March 23, since July 2025, the stablecoin balance on South Korea's top five cryptocurrency exchanges has fallen by about 55%; after the Korean won fell below the 1:1500 mark against the US dollar in mid-March, the rate of capital outflows further accelerated. While the balance of stablecoins has declined, funds flowing into South Korea's domestic stock market have increased, indicating a widespread shift in investor allocation, and tax-preferential "capital return" accounts have further contributed to this trend. This turn has pushed up the Korea Composite Stock Price Index (KOSPI), led by semiconductors, and at the same time extracted retail liquidity from the crypto market. The future flow of funds will be closely linked to the strength of the South Korean stock market.