South Korean investors transferred a net $367 million in stablecoins from domestic cryptocurrency exchanges to overseas platforms in June 2026, extending a streak of monthly net outflows to 18 consecutive months, according to data from the Financial Supervisory Service (FSS).

Withdrawals to overseas exchanges totaled approximately $1.81 billion in June 2026, compared with inflows of about $1.44 billion, based on data submitted to lawmaker Lee Jong-wook.

The net outflow was equivalent to roughly 78% of South Korean retail investors' $473 million in net purchases of overseas stocks during the same month, underscoring growing demand for offshore crypto trading and investment products that are unavailable on domestic exchanges. The comparison is notable because South Korea maintains capital controls on the won, which is not freely convertible, making dollar-pegged stablecoins a practical channel for investors seeking exposure to dollar-denominated assets outside traditional foreign exchange frameworks.

Authorities have tightened oversight of foreign stablecoins — particularly U.S. dollar–pegged assets — in an effort to curb capital flight and reinforce monetary control. These measures have added friction to crypto liquidity while indirectly supporting domestic financial markets. According to a related report, stablecoin balances on South Korean exchanges have dropped by over 50% in less than one year.

Analysts and lawmakers say much of the stablecoin flow is being directed toward offshore derivatives, including leveraged crypto products and tokenized versions of South Korean equities, as well as dollar-denominated decentralized finance (DeFi) services, staking, and real-world asset (RWA) offerings. The availability of these products on offshore platforms stands in contrast to the limited offering on domestic exchanges, which operate under stricter listing and product restrictions enforced by Korean regulators.

Stablecoins have recorded net outflows every month since January 2025. In the second quarter of 2026, cumulative net outflows reached approximately $1.10 billion, even as South Korean investors were net sellers of overseas stocks over the same period.

Lawmaker Lee Jong-wook called on the government to strengthen investor protection and accelerate regulatory reforms, warning that an increasing share of capital is migrating to overseas exchanges where domestic safeguards do not apply.

The findings come ahead of deliberations on the Digital Asset Basic Act, with a recent South Korean policy report having proposed a framework for stablecoin oversight. South Korea has been one of the world's largest retail cryptocurrency markets by trading volume, and the legislation is being closely watched as a test case for how a major Asian economy balances innovation in digital assets against capital flow management and investor protection.