Allium Labs on‑chain data show wallets tied to South Korea’s five largest exchanges saw stablecoin holdings drop ~55% — from $575M in July 2025 to ~$188M by mid‑March 2026. The decline accelerated after the won weakened past ₩1,500/USD, prompting sales of dollar‑linked tokens (notably USDT) and conversion into won to redeploy into KOSPI equities. Brokerage deposits fell from ~₩131T to ~₩112T; KOSPI had already risen 75% in 2025 and gained another 37% in 2026, concentrated in Samsung Electronics and SK Hynix. Policy incentives (repatriation accounts with up to 100% capital‑gains tax exemptions) and Artemis data showing stablecoin volumes up elsewhere in Asia indicate this is a domestic capital rotation that removes a material retail liquidity pool from local crypto markets.

Stablecoin holdings on Korea’s five biggest exchanges fell ~55% (from $575M to ~$188M). The drop accelerated after the won weakened past 1,500/USD, with traders selling dollar‑linked tokens (notably USDT) and converting proceeds into won to buy domestic equities. Brokerage deposits fell (~₩131T to ~₩112T) while KOSPI rallied further; repatriation accounts (up to 100% CGT exemption) and Artemis data showing stablecoin volumes rising elsewhere in Asia point to domestic rotation. These facts imply a reduction in retail crypto liquidity and increased dependence on Korea’s equity rally.