A noteworthy phenomenon emerged in 2025 — a large-scale outflow of crypto assets from South Korea. According to data, over $110 billion has exited the Korean market.

The reasons behind this are not complicated. South Korea's regulatory policies are becoming increasingly strict, and trading rules have become exceptionally harsh, directly leading to a depletion of local liquidity. The once vibrant era of "Kimchi Premium" filled with speculative opportunities is fading away, replaced by continuous capital outflows.

From a market perspective, this massive capital outflow could lead to two very different outcomes:

On one hand, the fleeing funds have not disappeared but have moved to major international exchanges. This means that liquidity in the global market is actually increasing, and the overall trading depth of the ecosystem could improve. The capital has simply changed its geographical location, and market participants may benefit from better trading conditions.

On the other hand, the decline of the Korean market might just be beginning. If a former crypto trading hub cannot withstand regulatory pressure, are other regions also facing similar risks? The chain reaction could affect the entire global market. Investors need to consider: who will be the next market to fall into trouble?

In any case, this $110 billion flow is reshaping the landscape of the global crypto market.