Kiwoom Securities Acquires Bithumb Stake in Korean Crypto Push
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
crypto-exchangesouth-korea
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Kiwoom Securities, one of South Korea’s largest retail brokerages, is acquiring a significant stake in the Bithumb cryptocurrency exchange, according to a report published on June 29, 2026. The deal represents the latest move by a major traditional financial institution to gain exposure to the digital asset sector. This acquisition occurs as South Korea finalizes its framework for regulating cryptocurrency exchanges and their operators.
South Korea’s financial institutions are accelerating their foray into digital assets following the passage of the Virtual Asset User Protection Act. The legislation, which takes full effect in July 2026, provides clearer operational guidelines for exchanges and custody providers. This regulatory certainty reduces the legal ambiguity that previously deterred major brokerages from entering the crypto market.
The acquisition follows a similar move by KB Kookmin Bank, which purchased a stake in another local exchange, Coinone, for an estimated 100 billion won in April 2026. Shinhan Bank, another major financial group, has also developed its own digital asset custody service. This trend indicates a strategic shift as traditional finance seeks to capture market share in the rapidly growing crypto sector.
Macro conditions are also favorable, with the Bank of Korea holding its benchmark rate steady at 3.25% amid stable inflation readings. This environment allows financial firms to allocate capital toward strategic acquisitions rather than defensive balance sheet management. The Korean won has remained relatively stable against the U.S. dollar, trading near 1,350 won per dollar.
The reported acquisition values Bithumb’s operators at approximately 400 billion won, or $290 million. Kiwoom Securities’ investment is believed to be a minority stake, though the exact percentage remains undisclosed. This valuation reflects a significant premium compared to previous acquisition attempts in the sector.
Bithumb is South Korea’s second-largest crypto exchange by volume, with a market share of around 15%. The platform’s daily trading volume averaged 1.2 trillion won over the past quarter. Upbit remains the dominant player with over 80% market share and an estimated valuation exceeding 2 trillion won.
Kiwoom Securities reported a net income of 452 billion won for the fiscal year 2025. The brokerage holds total assets worth 48 trillion won, indicating the Bithumb investment constitutes a small but strategic portion of its capital allocation. By comparison, the entire Korean crypto exchange market sees annual spot trading volume exceeding 300 trillion won.
| Metric | Bithumb | Upbit (for comparison) |
|---|---|---|
| Estimated Valuation | ~400B won | ~2T won |
| Market Share | ~15% | ~80% |
| Avg. Daily Volume | 1.2T won | 6.5T won |
The acquisition provides Kiwoom with direct exposure to crypto trading fees and potential future revenue from exchange-traded products. Korean securities firms likely benefit from increased investor interest in crypto-related equities. KOSPI-listed firms with blockchain or exchange affiliations could see renewed buying interest from domestic institutional flows.
This move is bearish for smaller, non-affiliated exchanges that will struggle to compete with the compliance and marketing budgets of financial conglomerates. The deal signals further industry consolidation as the regulatory bar rises. Banking sector margins may face pressure if crypto asset growth begins to draw significant deposits away from traditional savings products.
A key risk is regulatory overreach should crypto volatility reemerge, potentially prompting authorities to tighten rules beyond the current framework. Crypto exchange valuations remain highly sensitive to bitcoin price swings and retail trading activity, which can decline rapidly during bear markets. Foreign investors are monitoring whether this institutional adoption can drive increased liquidity in Korean crypto markets, narrowing the Kimchi Premium discount.
Market participants should monitor the implementation of the Virtual Asset User Protection Act on July 19, 2026. The law will enforce stricter reserve requirements and auditing standards for all exchanges. Any regulatory announcements from the Financial Services Commission regarding banking exposure limits to crypto assets will impact future deal flow.
The Bank of Korea’s next policy decision on July 9th will influence capital flows into risk assets like crypto. A hold at 3.25% is widely expected. Key levels to watch include bitcoin’s hold above $60,000 and the USD/KRW exchange rate maintaining below 1,370.
Earnings reports from Kiwoom Securities in early August will provide the first indication of how the market values the strategic acquisition. Upbit’s parent company, Dunamu, may also face investor pressure to clarify its own listing or capital-raising plans in response to increased competition.
The acquisition is structurally bullish for bitcoin as it signifies deepening institutional infrastructure and adoption within a major economy. South Korea has historically been a key retail market for crypto, and involvement from a major brokerage like Kiwoom could increase fiat on-ramps and trading volume. However, the direct impact on bitcoin’s dollar price may be marginal compared to larger macro drivers like U.S. ETF flows or Fed policy.
This move parallels efforts by U.S. firms like Charles Schwab and Fidelity, which offer spot bitcoin ETFs and custody services. The key difference is that Kiwoom is taking a direct equity stake in an exchange operator, whereas many U.S. firms act as service providers or intermediaries. South Korea’s approach involves deeper integration between traditional brokerage services and crypto trading platforms.
Kiwoom Securities is a publicly traded company on the KOSPI, but its investment in Bithumb does not immediately make the crypto exchange itself public. Bithumb remains a privately held company. The acquisition could be a step toward an eventual initial public offering for Bithumb, following the path of rival Upbit’s parent company, which has also explored public listing options.
Kiwoom’s stake in Bithumb accelerates the convergence of traditional finance and digital assets in South Korea.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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