Nine outsourced firms post 18.6 billion won in losses in the first half; Hyperism decides to withdraw renewal f

South Korea's nine licensed digital asset custody providers posted a combined 18.6 billion won (~$13 million) operating loss in the first half of 2026, double the 9.3 billion won loss from the second half of 2025, according to a joint survey by the Financial Intelligence Unit (FIU) and Financial Supervisory Service released October 1. Total assets under custody fell 25% to 230.4 billion won at end-June from 307.1 billion won at end-2025, a decline of 76.7 billion won. Custodians, which safeguard digital assets for corporations and institutions, have invested in staffing and security infrastructure to prepare for the opening of the corporate market, but delayed regulatory framework reforms have hampered new client acquisition while security and internal-control costs continue to weigh on margins. The widening losses underscore the financial strain on Korea's institutional custody sector ahead of expected corporate participation rules. Watch for progress on Korea's virtual asset legislation and the timing of corporate market access, which would be key catalysts for custody demand and revenue recovery.