Crypto remittances in South Korea jump 380% in three years

South Korea's cryptocurrency-based overseas remittances have surged 380% over three years, far outpacing growth in traditional bank transfers as financial institutions push deeper into blockchain payment infrastructure.

Remittances processed through the country's five largest won-denominated crypto exchanges rose from 34.02 trillion won ($26.2 billion) in 2022 to 163.55 trillion won ($125.8 billion) last year, according to data cited by SBS Biz from the office of Congressman Kim Sang-hoon.

Over the same period, foreign currency remittances handled by South Korea's five major commercial banks grew about 20%. The banks processed $1.108 trillion in 2025, roughly 1,590 trillion won at the annual average exchange rate, up from $1.009 trillion in 2022.

Hwang Seok-jin, a professor at Dongguk University's Graduate School of International Information Protection, told SBS Biz that lower transaction costs may have driven consumers toward crypto platforms for overseas transfers.

The broadcaster reported that sending $20,000 through a commercial bank would cost roughly 25,000 won in fees. An equivalent Bitcoin transfer through a domestic crypto exchange would cost about 19,000 won regardless of transaction size.

South Korean financial institutions are expanding into blockchain-based payment services as digital asset transfers gain traction. Toss Bank recently signed a memorandum of understanding with the Solana Foundation covering international remittances. Shinhan Financial Group and Industrial Bank of Korea have held discussions focused on stablecoins and digital asset payments.

The activity comes as South Korea prepares to introduce a regulated framework for cross-border virtual asset transfers. The government promulgated amendments to the Foreign Exchange Transactions Act on June 2 after cabinet approval. The revised law takes effect in December following a six-month grace period.

Under the new regime, companies providing cross-border digital asset transfer services must register with the Ministry of Economy and Finance and report overseas transfer activity through the Bank of Korea's foreign exchange reporting network.

Government agencies are also considering whether fintech companies should be allowed to participate alongside existing Virtual Asset Service Providers. Bank of Korea officials said authorities are reviewing registration requirements and system integration measures before the framework takes effect.

Industry participants expect the final enforcement rules to clarify who can enter the market. Many fintech firms have previously faced barriers to digital asset services because of VASP registration requirements and difficulties securing real-name banking partnerships.

SBS Biz reported that competition among banks for new revenue opportunities could intensify if South Korea completes the legal framework for digital assets and advances broader cryptocurrency legislation.