South Korean interest in crypto trading is cooling, with retail trading volume down 28% year-on-year in Q1.

CoinFeed reported on June 17th that, according to the Korea Times, South Korean interest in cryptocurrency trading is cooling. Data from TRM Labs shows that South Korea's retail cryptocurrency trading volume reached approximately $69 billion in the first quarter of this year, ranking second globally, but down 28% year-on-year, the largest decline among major global markets, compared to a global average decline of 20%. Analysts stated that the rise in AI-driven semiconductor stocks in the South Korean stock market has absorbed retail investor capital, diverting risk appetite. The South Korean KOSPI index has risen approximately 196% over the past year, with large-cap tech stocks outperforming major cryptocurrencies in single-day gains. South Korea's Virtual Asset User Protection Act has raised compliance requirements for exchanges, restricting local exchanges to spot trading while offshore platforms offer a wider range of products such as derivatives, leverage, and pre-market trading. Analysts point out that the continued recovery in Bitcoin and cryptocurrency prices is the most direct catalyst for renewed retail investor participation.