Written by: Tiger Research

Translated by: AididiaoJP, Foresight News

Core Conclusions

The trading volume in the South Korean cryptocurrency market is among the highest in the world, but regulatory restrictions prevent enterprises from entering, and the demand side remains highly reliant on retail investors. If corporate accounts are opened, the demand base will significantly broaden, and the market may have the opportunity to enter the next phase.

It is estimated that by 2030, the upper limit of cryptocurrency assets held by South Korean enterprises could reach 82 trillion won. Trading, custody, and prime brokerage services could contribute approximately 570 billion won in revenue each year.

If the opening is delayed further, 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, South Korean Cryptocurrency Market Faces Growth Ceiling

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

However, the domestic cryptocurrency industry has not grown in parallel. The valuation gap between South Korean companies and major global cryptocurrency firms clearly reflects this disparity. There are limitations to direct comparisons due to differences in the scale and business scope of capital markets across countries, but the gap remains significant. The valuation of South Korea's largest cryptocurrency company, Dunamu (operator of Upbit), is about one-seventh that of Coinbase.

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

Delays in Opening Corporate Accounts, 82 Trillion Won Market Still Remains on Paper

The progress of corporate account openings has fallen behind the original schedule. In 2025, South Korea's Financial Services Commission planned to first allow about 3,500 listed companies and registered professional investment firms to trade cryptocurrency assets for investment purposes, before gradually opening up further. However, the first phase has not yet started, and there is no timetable for broader corporate access. Consequently, corporate funds still find it difficult to enter the South Korean cryptocurrency market.

Once corporate accounts are opened, the demand side will significantly expand. Based on the managed assets of private financial institutions and public pension funds, and referring to the allocation ratios from more mature markets like the US in 2027, the upper limit for cryptocurrency asset management scale in South Korean enterprises is estimated to be about 16 trillion won.

With an increase in corporate participants, the market can continue to expand. Starting in 2028, the model will simultaneously account for asset expansion and higher allocation ratios: private financial institutions are assumed to invest up to 5% as discussed in South Korea, while public funds are more conservative, assuming a 2% allocation. Under this assumption, corporate cryptocurrency asset management scale could reach approximately 35.2 trillion won in 2028, about 57.1 trillion won in 2029, and the upper limit could reach 82 trillion won in 2030. This represents the potential market upper limit, but the actual scale still depends on regulatory pace and market conditions.

Financial Services for Enterprises: Estimated Annual Revenue of Approximately 570 Billion Won

After corporate entry, the market will not merely remain at the trading level. Large orders require stable transactions, assets need secure custody, and treasury and risk management must be conducted. Services like custody and prime brokerage will develop subsequently, no longer relying solely on centralized exchange fees.

Referring to income models from overseas corporate markets, by 2030, if corporate asset management scales reach 82 trillion won, annual revenue could be around 570 billion won, including trading fees as well as custody, execution, and treasury management revenues.

The larger the corporate asset scale, the stronger the demand for such services. Custody and prime brokerage services for corporate clients are expected to provide a new source of income for South Korea's cryptocurrency industry beyond retail trading fees.

Beyond Investment: The Industry Chain is Expected to Extend Externally

Corporate accounts not only serve investment trading but also companies conducting business with cryptocurrency assets. Stablecoin payments and remittances are the most direct examples. Such businesses require enterprises to transact directly in cryptocurrency and settle in won. Restrictions on corporate transactions in South Korea have also stifled related businesses.

Overseas, several payment and settlement infrastructure companies, such as Rain, BVNK, and Mesh, have already emerged. The valuation criteria differ between listed companies and private companies, making direct comparisons inappropriate, but several companies in this space have valuations that reach tens of trillions of won.

Once corporate accounts are opened, South Korea may also develop similar businesses. Payment and fintech companies could conduct cryptocurrency payments and remittances, while other enterprises could use cryptocurrency assets for payments and settlements. This would provide an opportunity for the South Korean cryptocurrency industry to expand from a "trading market" to an "application market."

Corporate Entry Helps Match Liquidity with Trading Volume

Retail participation is high, which has boosted South Korea's trading volume, but the ability to accommodate large orders remains weaker than major exchanges globally. Data from the past week indicates that the slippage for a 10 billion won Bitcoin spot order in South Korea's three largest exchanges amounted to 213.2 basis points; under the same conditions, Binance recorded only 12.2 basis points. The larger the order, the more significant the gap.

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 accommodate large orders, leading to price impacts as order size increases. High trading volume does not equate to the ability to execute large trades.

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

The Later Opening, The More Opportunities Land Overseas First

Due to the continued delay in opening corporate accounts, domestic demand has begun to shift outward. Allium data shows that between January 2021 and September 2026, B2B stablecoin payments between South Korea and other countries amount to about 620 million USD. This data excludes deposit and withdrawal transactions and investment transactions at centralized exchanges, counting only payments for goods and services. This indicates that enterprises have long been using stablecoins for payments and settlements beyond investments.

A considerable part of the demand has already landed overseas. Some import and export companies find it challenging to process stablecoins in South Korea and resort to overseas entities or partners in places like Hong Kong for conversions and settlements. Hyperithm provides cryptocurrency asset management for corporate clients in Japan, and plans to expand digital asset business for asset securities in Hong Kong in the future. South Korea's demand and business capabilities have already been converted into business in overseas markets with more complete regulatory frameworks.

If this trend continues, the companies going overseas will accumulate not only clients 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 migrate back quickly. Companies are also more willing to continue investing in markets where they have accumulated clients and experience. Delaying corporate accounts not only postpones the entry time for capital 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 goes beyond merely bringing company funds into the cryptocurrency market; they may also give rise to a new financial service market. As mentioned, by 2030, the upper limit of corporate cryptocurrency asset management scale is estimated to be about 82 trillion won, with annual revenue from trading, custody, and prime brokerage around 570 billion won. Once corporate funds enter, there will also be rising demands for related trading, custody, and asset management services.

The impact may also spill over beyond financial services: payments, remittances, accounting, taxation, security, anti-money laundering, and data services may all increase as enterprises use cryptocurrency assets. The key lies in 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 is lacking is the ability for enterprises to participate. When demand is blocked at the retail level, financial services and related industries struggle to grow. If corporate accounts can be realized, existing demand can match the expansion of the industry, allowing the market to transform from a "retail market" to one where enterprises and industries can also participate.