South Korea's cryptocurrency market has experienced a significant liquidity drop, with stablecoin balances on major exchanges falling by 55% from July 2025 to mid-March 2026. On-chain data from Allium Labs reveals that balances at Upbit, Bithumb, Coinone, Korbit, and GOPAX decreased from $575 million to $188 million. This decline is linked to the weakening Korean won, which, after surpassing 1,500 per dollar, led to increased selling pressure. Bradley Park of DNTV Research suggests that investors sold USD-pegged stablecoins during high exchange rates, converting them back to won and investing in domestic assets. Concurrently, brokerage deposits dropped from KRW 131 trillion to KRW 112 trillion. Despite this, Artemis data indicates that stablecoin trading volume in Asia rose, highlighting the outflow as a South Korea-specific issue rather than a regional trend.