South Korea Crypto Exchange Profits Drop 78% in H1

South Korean crypto exchanges reported a sharp deterioration in first-half earnings, with operating profits falling 78% year over year in 2026 as trading volumes, market capitalization and customer deposits declined.

The slump highlights how quickly exchange revenue can contract when retail and institutional activity cools. For venues that depend heavily on transaction fees, lower turnover typically translates into weaker margins, even when broader crypto sentiment remains constructive.

The decline also suggests that capital is rotating more selectively across the market. A Greed reading of 72 on the Fear & Greed Index implies investors are still willing to take risk, but that appetite is not evenly distributed across exchanges, tokens and trading venues.

In practical terms, the earnings drop may pressure South Korean platforms to lean harder on non-trading revenue, including custody, staking and listing services. It may also intensify competition for active users as exchanges seek to defend market share in a softer volume environment.