Are South Korean Crypto Exchanges Overcharging Traders? President Lee Pushes for Investigation to Lower Costs and Enhance Market Fairness

South Korea To Investigate Crypto Trading Fees Amid Push To Support Retail Investors

South Korea’s top financial regulator is preparing to examine the transaction fees charged by local cryptocurrency exchanges, following concerns that trading costs may be too high for everyday users—particularly younger investors.

The Financial Services Commission (FSC) will launch the review as part of a broader plan to bring more transparency to the digital asset market.

Fee Survey Targets Trading, Deposit And Withdrawal Charges

The upcoming probe will involve a detailed survey of domestic exchanges, collecting data on how trading fees are set, what methods are used to charge users, and the total amounts collected.

The regulator aims to determine whether local platforms are imposing an excessive burden on consumers compared to international counterparts.

A senior FSC official told Herald Economy during a recent policy briefing,

“We need to examine whether the current fees of domestic exchanges are an excessive burden on consumers and whether they are at an appropriate level compared to overseas cases.”

No specific target rate has been proposed yet, with the FSC stating it will wait for results from its analysis before recommending any changes.

The investigation was presented to the State Affairs Planning Committee, the transitional policy team supporting President Lee Jae-myung’s administration.

Presidential Promise To Ease Crypto Trading Costs

The fee probe reflects President Lee’s campaign pledge to lower crypto trading costs as part of his broader pro-crypto platform.

Lee Jae-myung serves as the 14th President of South Korea since 4 June 2025.

Lee had promised to make crypto trading more accessible, especially for younger investors seeking alternatives to traditional financial markets.

His administration is also expected to back more crypto-friendly regulations in the months ahead, aligning with the growing interest in digital assets among South Korea’s retail traders.

Financial Watchdog FSS Joins Fee Crackdown

In a related move, the Financial Supervisory Service (FSS) has launched a separate investigation into local exchanges’ full fee structures.

That includes not only trading fees but also costs related to deposits, withdrawals, and other service charges.

The FSS says it is assessing whether any practices could be deemed unfair or deceptive, in a bid to protect consumers and strengthen trust in the financial system.

The review comes amid increased attention on crypto oversight, especially following past incidents of fraud and market manipulation involving digital asset firms in the country.

One high-profile example was the recent acquittal of Haru Invest CEO Lee Hyung-soo, who had been at the centre of a $650 million crypto fraud case.

The case brought renewed scrutiny over regulatory loopholes in the crypto space and raised calls for tighter enforcement.

Could Local Exchanges Be Forced To Lower Fees?

If the findings reveal that domestic exchanges charge significantly more than overseas platforms, regulators may introduce new guidelines to standardise or cap certain fees.

Such changes could reshape the competitive landscape, with exchanges likely needing to rework their pricing models to retain users.

The probe also comes as South Korea considers more structural reforms in digital finance, including the potential launch of a won-pegged stablecoin by the Bank of Korea.

These moves point to a growing desire to bring more stability and fairness into the digital asset sector while encouraging responsible growth.