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Korea Crypto Market Report 2023 : Charts & Analysis


AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis

Are you curious about the most recent cryptocurrency reports in South Korea? In this article, we will provide an analysis of the latest trends and developments in the rapidly evolving South Korean cryptocurrency landscape.


Based on an official survey conducted by the Korea Financial Intelligence Unit (KoFIU) during the third and fourth quarters of 2022, this report provides valuable insights into the growth, adoption, and regulation of digital assets in the Korean market.


As one of the most technologically advanced nations globally, South Korea has long been a driving force in the world of cryptocurrencies. This article will delve into the recent advancements and challenges that have shaped the crypto market in the country, enabling investors, enthusiasts, regulators, and even crypto marketers to make informed decisions in this ever-changing industry. Without further ado, let’s have a look at the Korea crypto market report!



Korea Crypto Market Report 2023 🔽



1. Average Daily Trading Volume

AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis - average daily trading amount per month

The second half of 2022 saw a noticeable decrease in the average daily trading volume in the Korean crypto market. Based on the data collected from 27 trading platforms over six months, the total trading volume amounted to 545 trillion KRW, with an average daily trading volume of 3 trillion KRW. This figure represents a 43% decrease from the first half of 2022, which had a total trading volume of 951 trillion KRW and an average daily trading volume of 5.3 trillion KRW.


The monthly trading volume during the second half of 2022 exhibited a general downward trend. However, there was a temporary increase in trading volume in November due to the FTX bankruptcy incident.


In conclusion, the Korean crypto market experienced a significant decrease in trading volume during the second half of 2022, with a downward trend persisting throughout the period. External events, such as the FTX bankruptcy, also played a role in the fluctuating trading volumes.



2. Business Performance - Revenue and Profit

AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis - 2. Business Performance - Revenue and Profit

During the second half of 2022, the revenue and profit of Korean cryptocurrency trading platforms experienced a significant decrease compared to the first half of the year. The revenue for the second half of 2022 amounted to 578.8 billion KRW, marking a 42% decrease (427.2 billion KRW) from the first half of the year, which recorded a revenue of 1 trillion KRW. Notably, five coin market operators did not report any revenue from transaction fees during this period.


The operating profit in the second half of 2022 was 127.4 billion KRW, a substantial 80% decrease (498 billion KRW) compared to the first half's operating profit of 625.4 billion KRW. The KRW (won) market's operating profit amounted to 177.8 billion KRW, a 73% decrease from the first half's 663.4 billion KRW. Meanwhile, the coin market's operating profit experienced a 33% decrease, amounting to a loss of 50.4 billion KRW compared to the first half's loss of 38 billion KRW.


Furthermore, the KRW market recorded an operating deficit during the fourth quarter of 2022, reflecting a challenging period for the Korean crypto market's overall business performance.


In summary, the second half of 2022 saw a decline in both revenue and profit for the Korean cryptocurrency trading platforms, with several operators experiencing losses. This downturn highlights the challenges faced by the industry during this period.



3. KRW (Won) Deposits

AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis - monthly average deposits

The total KRW deposits held by customers, which serve as idle funds for trading, witnessed a continuous decline during the second half of 2022. By the end of the year, the total KRW deposits amounted to 3.6 trillion KRW, marking a 38% decrease (2.3 trillion KRW) compared to the end of the first half of 2022, when the total deposits stood at 5.9 trillion KRW.


In summary, the Korean crypto market experienced a significant decline in KRW deposits held by customers during the second half of 2022. This decrease indicates a reduction in available funds for trading, which may have contributed to the observed downturn in trading volumes and business performance during this period.



4. Number of Tradable Cryptocurrencies

AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis-4. Number of Tradable Cryptocurrencies

As of the end of 2022, the total number of cryptocurrencies traded in the Korean market was 1,362 (including duplicates), representing a slight decrease of 9 cryptocurrencies (0.7%) compared to the end of June 2022, when 1,371 cryptocurrencies were being traded. If we consider only the 26 businesses surveyed in the first half of 2022, there was a decrease of 8 cryptocurrencies.


In the KRW market, an average of 154 cryptocurrencies were handled (+1 compared to June 2022), while the coin market dealt with an average of 27 cryptocurrencies (-2 compared to June 2022). The number of cryptocurrencies handled by each operator ranged from a maximum of 196 to a minimum of just 1.


Excluding duplicate cryptocurrencies supported by multiple operators, the total number of unique cryptocurrencies in circulation in the Korean market was 625. This represents a decrease of 13 cryptocurrencies (2%) compared to the end of June 2022.


In summary, the second half of 2022 saw a slight decline in the number of cryptocurrencies traded in the Korean market, both in terms of unique and duplicate assets. This trend indicates that the market may be consolidating, with fewer cryptocurrencies available for trading.



5. Registered Accounts and Active Users

AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis - 5. Registered Accounts and Active Users

By the end of 2022, the total number of registered accounts in the Korean crypto market, including duplicates within and across businesses, was 11.78 million. This figure represents a decrease of 1.32 million accounts (10%) compared to the end of June 2022. The decline can be attributed to factors such as an increase in the number of accounts automatically terminated due to long-term inactivity.


In the KRW market, there were 11.32 million accounts, a decrease of 1.13 million accounts (9%) compared to June 2022. Meanwhile, the coin market had 450,000 accounts, down by 190,000 accounts (29%). The number of individual customer accounts decreased by 1.32 million (10%) to 11.77 million, while corporate customer accounts decreased by 692 accounts (13%) to 4,831.


In terms of actual active users (accounts with completed customer verification), there were 6.27 million users by the end of 2022, a decrease of 630,000 users (9%) compared to June 2022, including duplicates. The KRW market had 6.18 million users, down by 630,000 users (9%), while the coin market had 94,000 users, an increase of 6,714 users (8%).


The decrease in the number of active users can be attributed to the failure (or non-compliance) of customers to re-verify their accounts, which is required by the Know Your Customer (KYC) regulations. The KYC compliance rate for the KRW market was 54.6% (-0.1 percentage points), while the coin market had a compliance rate of 20.7% (+7.1 percentage points).


In summary, the Korean crypto market saw a decline in the number of registered accounts and active users during the second half of 2022, with both individual and corporate customers affected. This decrease can be attributed to factors such as long-term account inactivity and non-compliance with KYC regulations.



6. Holdings by Users

AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis - 6Scale of virtual assets held by age group

The majority of Korean crypto market users held relatively small amounts of cryptocurrency and KRW deposits. According to the data, 69% of users (4.35 million) held less than 500,000 KRW in combined crypto assets and KRW deposits. While there were some users (25,000 or 0.4%) who held large amounts exceeding 100 million KRW, the majority had more modest holdings.


The proportion of users holding less than 1 million KRW in crypto assets increased by 3 percentage points compared to June 2022, representing 76% (4.77 million) of users. On the other hand, the proportion of users holding over 10 million KRW in crypto assets decreased by 1 percentage point compared to June 2022, accounting for 6% (380,000) of users.


In summary, the Korean crypto market predominantly comprises users with relatively small holdings, with the majority holding less than 500,000 KRW in combined crypto assets and KRW deposits. The second half of 2022 saw an increase in the proportion of users holding less than 1 million KRW and a decrease in the proportion of users holding over 10 million KRW in crypto assets.



7. Top 10 Cryptocurrencies by Market Cap

AJ Marketing - Korea Crypto Market Report 2023 : Charts & Analysis - 7comparison of global and domestic virtual assets by market cap

The following are the top four cryptocurrencies by market cap and their respective share in the domestic market:

  1. BTC (Bitcoin) – Market Cap: 3.99 trillion KRW, Share: 20.6%

  2. XRP (Ripple) – Market Cap: 3.24 trillion KRW, Share: 16.7%

  3. ETH (Ethereum) – Market Cap: 2.41 trillion KRW, Share: 12.4%

  4. DOGE (Dogecoin) – Market Cap: 0.79 trillion KRW, Share: 4.1%

In summary, the Korean crypto market's top cryptocurrencies by market cap are Bitcoin, Ripple, Ethereum, and Dogecoin. These four cryptocurrencies collectively represent a significant portion of the domestic market, with Bitcoin leading the way at a 20.6% share. The distribution of market share among these top cryptocurrencies may reflect the preferences and trading habits of Korean crypto users.



Conclusion


The Korean crypto market report for 2023 reveals a decline in daily trading volume, revenue, and the number of registered accounts in the second half of 2022. Despite these declines, the market remains dynamic, with over 600 cryptocurrencies available for trading. The majority of users in the market hold relatively small amounts of crypto assets, with Bitcoin, Ripple, Ethereum, and Dogecoin dominating the domestic market share.


As the Korean crypto market continues to evolve, it will be crucial for investors, traders, and regulators to stay informed and adapt to the ever-changing trends in the Korea landscape.





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