Korea Leads East Asia in Crypto Economy Growth

According to a recent report by Chainalysis, South Korea’s digital asset economy reached a remarkable $449.1 billion from July 2025 to June 2026, marking it as the largest in East Asia. This represents a 12.3% growth from the prior year, significantly outpacing its regional counterparts, with Japan at $228.3 billion, Hong Kong at $192.2 billion, China at $176.3 billion, and Taiwan at $140.4 billion.

The Rise of AI-Related Cryptocurrencies

The surge in Korea’s crypto market has been predominantly fueled by retail investors, particularly in AI-related cryptocurrencies. As domestic investors engaged heavily with companies like Samsung Electronics and SK hynix during an AI-centric stock market upswing, similar enthusiasm translated to digital assets associated with AI projects.

By June 2026, trading in AI-related cryptocurrencies comprised roughly 18% of all won-denominated crypto transactions—representing the most significant segment among thematic asset categories. This highlights a striking contrast compared to Japan, where such assets accounted for only 0.91% of yen-denominated trading, indicating a 19.5-fold difference.

Leading AI Cryptocurrencies in Korea

Within the domain of AI-related cryptocurrencies, several notable players emerged in South Korea. The top five by trading volume included:

• Worldcoin: $7.41 billion
• Sahara AI: $3.2 billion
• Virtuals Protocol: $2.7 billion
• Bio Protocol: $2 billion
• NEAR Protocol: $1.7 billion

Outlook for 2027

Looking ahead, the landscape of Korea’s crypto market could undergo significant changes in 2027. The introduction of a long-anticipated 22% tax on cryptocurrencies may reshape investor behavior, particularly if institutional participation becomes more prevalent. As institutions gain access, they could offer a stabilizing counterbalance should retail trading diminish.

Comparative Market Structures Across East Asia

The report also underscores the varying market dynamics across East Asian nations. In Hong Kong, institutional inflows constituted 16% of total cryptocurrency investments, while Japan’s decentralized exchanges represented 34.5% of its market. In contrast, peer-to-peer transactions accounted for a significant 59.1% of China’s digital asset landscape.