Tiger Research: Korean Crypto Market Relies on Retail as Corporate Accounts Remain Blocked

Author: Tiger Research

Compiled by: AididiaoJP, Foresight News

Key Takeaways

Korea's crypto market ranks among the world's largest by trading volume, but regulatory restrictions on corporate participation leave demand heavily dependent on retail investors. Once corporate accounts are allowed, the demand base will broaden significantly, giving the market a chance to enter its next phase.

Estimates suggest that by 2030, Korean corporate crypto holdings could reach up to 82 trillion won. Trading, custody, and prime brokerage services could generate roughly 570 billion won in annual revenue.

If opening is delayed further, Korea's demand and business opportunities will be pushed overseas. Outflows are already visible in payments and asset management. Once overseas markets establish client relationships and operational experience first, related business may not return to Korea even after it opens up.

Without Institutional Participation, Korea's Crypto Market Faces a Growth Ceiling

Korea is one of the most active crypto markets in the world. In fiat terms, the Korean won has contributed about 30% of global crypto trading volume in recent years, second only to the US dollar; at its peak, it exceeded 50%, briefly surpassing the dollar. Given Korea's population and economic size, this level of activity is unusual.

But the domestic crypto industry has not grown in tandem. The valuation gap between Korean and major global crypto companies clearly reflects this disparity. Direct comparisons are limited by differences in capital market size and business scope, but the gap remains significant. Dunamu, Korea's largest crypto company and operator of Upbit, is valued at roughly one-seventh of Coinbase.

Korea's market is supported by retail investors, while regulations keep small and medium-sized enterprises out. The US market structure is different: institutions account for over 80% of Coinbase's trading volume, forming the market's foundation. Korea generates substantial volume, but corporate demand is largely absent, making it difficult for the industry to advance to the next stage.

Corporate Accounts Repeatedly Delayed, 82 Trillion Won Market Remains on Paper

Corporate account opening has fallen behind the original plan. In 2025, Korea's Financial Services Commission planned to first allow about 3,500 listed companies and registered professional investment entities to trade crypto assets for investment purposes, then open up in phases. The first phase has yet to begin, and there is no timeline for broader corporate access. Corporate funds therefore still struggle to enter Korea's crypto market.

Once corporate accounts are allowed, the demand side will broaden significantly. The estimate is based on assets under management at private financial institutions and public funds such as pensions, applying the allocation ratios of more mature corporate markets like the US in 2027. Under this model, Korean corporate crypto assets under management could reach an upper limit of about 16 trillion won.

As corporate participation increases, the market can continue to expand. From 2028, the model incorporates both asset growth and higher allocation ratios: private financial institutions are calculated at the 5% investment cap discussed in Korea, while public funds are more conservative at 2%. Under these assumptions, corporate crypto assets under management would be about 35.2 trillion won in 2028, 57.1 trillion won in 2029, and up to 82 trillion won by 2030. This is a potential market ceiling; actual size will depend on regulatory pace and market conditions.

Corporate-Facing Financial Services: About 570 Billion Won in Annual Revenue

Once corporations enter, the market will not stop at trading. Large orders require reliable execution, assets need secure custody, and treasury and risk management are necessary. Services such as custody and prime brokerage will develop accordingly, no longer relying solely on centralized exchange fees.

Based on overseas corporate market revenue models, if corporate assets under management reach 82 trillion won by 2030, annual revenue would be about 570 billion won, including trading fees and income from custody, execution, and treasury management.

The larger the corporate asset base, the stronger the demand for such services. Corporate-facing businesses like custody and prime brokerage could provide Korea's crypto industry with a new revenue stream beyond retail trading fees.

Beyond Investment: The Industry Chain Could Extend Further

Corporate accounts serve not only investment transactions but also companies that operate businesses using crypto assets. Stablecoin payments and remittances are the most direct examples. Such businesses require companies to directly trade crypto assets and settle in Korean won. Korea's restrictions on corporate trading also suppress related business activities.

Overseas, a group of payment and settlement infrastructure companies has emerged, such as Rain, BVNK, and Mesh. Valuation metrics differ between listed and private companies, so direct comparison is not appropriate, but several companies in this sector have reached valuations in the trillions of won.

Once corporate accounts are opened, Korea could also develop similar businesses. Payment and fintech companies could offer crypto payments and remittances, and other enterprises could use crypto assets for collections, payments, and settlements. Only then would Korea's crypto industry have the opportunity to expand from a "trading market" to an "application market."

Corporate Entry Needed for Liquidity to Match Volume

High retail participation drives Korea's trading volume, but the capacity to absorb large orders remains weaker than major global exchanges. Estimates of Bitcoin spot trading over the past week show that a 10 billion won order would incur round-trip slippage of 213.2 basis points across Korea's three largest exchanges combined; under the same conditions, Binance shows only 12.2 basis points. The larger the order, the wider the gap.

This indicates that Korea's market depth does not match its trading volume. Trading is active, but the order book may not be thick enough to absorb large orders, and price impact rises with order size. High volume does not equal the ability to execute large trades.

Corporate accounts would help improve the participant structure and attract professional liquidity providers. With a thicker order book, price impact and transaction costs for large orders would decline, potentially improving trading efficiency for both institutions and retail investors.

The Later the Opening, the Sooner Opportunities Land Overseas

With corporate accounts still unopened, domestic demand is already shifting overseas. Allium data shows that from January 2021 to September 2026, B2B stablecoin payments between Korea and other countries totaled about $620 million. This figure excludes centralized exchange deposits/withdrawals and investment transactions, counting only payments for goods and services. This shows that companies have long been using stablecoins for payments and settlements beyond investment.

A significant portion of demand has already landed overseas. Some import/export companies that find it difficult to handle stablecoins in Korea use overseas entities or partners in places like Hong Kong for conversion and settlement. Hyperithm provides crypto asset management for corporate clients in Japan, and Mirae Asset Securities is expanding digital asset business in Hong Kong. Korea's demand and business capabilities are already being converted into business in overseas markets with more complete regulatory frameworks.

If this trend continues, companies going overseas accumulate not only clients and revenue but also business relationships and operational experience. Once payment networks and commercial relationships are established overseas, these activities may not quickly migrate back even if Korea opens up later. Companies are also more willing to continue investing in markets where they have already built clients and experience. Delaying corporate accounts not only postpones the entry of capital but may also allow businesses that should have grown in Korea to take root overseas first.

Next Step: Open Corporate Accounts

The significance of corporate accounts goes beyond bringing corporate funds into the crypto market; it could also spawn a new financial services market. As noted, corporate crypto assets under management could reach an upper limit of about 82 trillion won by 2030, with annual revenue from trading, custody, and prime brokerage of about 570 billion won. Once corporate funds enter, demand for trading, custody, and asset management services will also rise.

The impact could also spill beyond financial services: payments, remittances, accounting, tax, security, anti-money laundering, and data services could all expand as companies use crypto assets. The key is whether these opportunities remain in Korea. If they stay domestic, Korean companies can retain revenue and operational experience; if transactions remain onshore, capital flows are easier to track, and tax and market oversight have better leverage.

Korea does not lack trading volume or demand; what it lacks is the ability for corporations to enter. Demand is blocked at the retail level, making it difficult for financial services and related industries to grow. If corporate accounts are implemented, existing demand can connect to industry expansion, and the market can transform from a "retail market" into one where corporations and industries can also participate.