South Korea’s cryptocurrency market erupted with activity this week as a punishing sell-off in the nation’s equity benchmark sent traders scrambling for alternative venues, with trading volumes between the Korean won and the world’s largest stablecoin surging roughly 600% in a matter of days.

Data from Upbit, South Korea’s largest cryptocurrency exchange by volume, showed that KRW-USDT trading approached 200 billion won (about 140 million USDT) on July 29, compared with approximately 20 million USDT on July 25. The spike arrived alongside a brutal stretch for the KOSPI index, which shed close to 18% over the period as a rout in semiconductor-related equities ricocheted through the broader market.

The sudden pivot toward crypto trading…