According to ChainCatcher, citing SBS Biz, overseas remittances through cryptocurrency exchanges in South Korea have surged 380% over the past three years, while those through traditional banks grew only 20%. The stark contrast highlights the rapid penetration of digital assets in cross-border payments.
Data shows that last year, the total foreign currency remittance volume of South Korea's five major commercial banks reached 1,590 trillion won (approximately $1.22 trillion), a 20% increase from 1,318 trillion won ($1.01 trillion) in 2022. In comparison, based on data from lawmaker Kim Sang-hoon's office, the remittance volume of the five largest Korean won-denominated crypto exchanges jumped from 34.02 trillion won ($26.2 billion) to 163.55 trillion won ($125.8 billion) over the same period, representing a 380% surge. Crypto remittances now account for over 10% of total bank remittance volume, compared to only 2.6% three years ago.
Professor Hwang Seok-jin of Dongguk University attributed the explosive growth of crypto remittances to their significantly lower transaction fees compared to traditional banking systems. The cost advantage has attracted a large number of individuals and small businesses to choose digital asset channels for cross-border fund transfers.