South Korea has seen cryptocurrency-based overseas remittances climb 380% in the past three years, outpacing growth in traditional bank transfers as financial institutions increase their focus on blockchain-powered payment services.
According to a SBS Biz report, remittances processed through South Korea’s five largest won-denominated cryptocurrency exchanges rose from 34.02 trillion won ($26.2 billion) in 2022 to 163.55 trillion won ($125.8 billion) last year. The figures were cited from data provided by the office of Congressman Kim Sang-hoon.
The report showed that foreign currency remittances handled by the country’s five major commercial banks reached 1.108 trillion dollars in 2025. Based on the annual average exchange rate, that amounted to about 1,590 trillion won. In 2022, the same banks processed 1.009 trillion dollars, equivalent to roughly 1,318 trillion won, resulting in growth of about 20% over the three-year period.
Hwang Seok-jin, a professor at Dongguk University’s Graduate School of International Information Protection, told SBS Biz that lower transaction costs may have encouraged consumers to use cryptocurrency platforms instead of banks for overseas transfers.
The broadcaster reported that a customer sending $20,000, about 30 million won, through a commercial bank would pay a remittance fee of roughly 25,000 won (approx. $16.67). A transfer of an equivalent amount of Bitcoin through a domestic cryptocurrency exchange would cost about 19,000 won (approx. $12.67) regardless of transaction size.
Banks pursue blockchain payment opportunities
South Korean financial institutions have begun expanding their involvement in blockchain-based payment infrastructure as digital asset transfers gain traction.
Toss Bank recently signed a memorandum of understanding with the Solana Foundation covering areas that include international remittances. Shinhan Financial Group and Industrial Bank of Korea have also held discussions focused on stablecoins and digital asset payments.
The growing interest 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 will take 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. Officials from the Bank of Korea have stated that 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 Virtual Asset Service Provider 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.
