Bithumb Is Last Major Prize Among Korea’s Won-Based Crypto Exchanges as Kiwoom Weighs Investment

Pairings between South Korea’s won-based virtual-asset exchanges and financial or platform companies are nearing an endgame. Naver Financial is pursuing a tie-up with Dunamu, Korea Investment & Securities has invested in Coinone, Mirae Asset Group acquired Korbit, and Gopax has become a subsidiary of Binance. Among the country’s major won-based exchanges, Bithumb is effectively the only large operator still left that could bring in a new strategic investor.

According to the financial investment industry, Kiwoom Securities is reviewing a plan to secure a stake in Bithumb through a third-party allotment of new shares. The size of the investment and the stake to be acquired have not been finalized. Because Bithumb has not formally put management control up for sale, the transaction could end up resembling a pre-IPO equity investment coupled with a business partnership. In a filing on June 29, Kiwoom said nothing specific had been decided or confirmed and that it would make another disclosure when details are finalized or within one month.

If the two companies reach a deal, it would unite major retail platforms in stocks and virtual assets. Kiwoom is South Korea’s flagship retail brokerage and has held the top spot in domestic stock brokerage market share for 21 consecutive years since 2005. In the first quarter, its share of the overall domestic stock market was 16.4%, while its share of individual investor trading reached 25.7%. Average daily domestic stock trading value was 27.8 trillion won, and client deposits totaled 13.6 trillion won. On a consolidated basis, the company posted 1.4882 trillion won in operating profit and 1.115 trillion won in net income last year, underscoring its financial capacity to invest.

Bithumb is South Korea’s second-largest won-based virtual-asset exchange. According to CoinGecko, Bithumb accounted for $113.05 million, or 24.18%, of the $467.56 million in 24-hour trading volume across the country’s five major won-based exchanges as of July 24. Market leader Upbit handled $329.9 million, or 70.56%. Together, the two platforms controlled 94.74% of the market.

A tie-up between the top platform for retail stock trading and the No. 2 platform for crypto trading could create substantial cross-selling opportunities. Kiwoom could direct users of its Hero S# mobile trading app, which had about 3.43 million monthly active users as of January, to Bithumb. Bithumb users, in turn, could gain access to stocks, exchange-traded funds and token securities.

Both sides also need new growth drivers, giving the potential deal added momentum. Kiwoom’s share of individual investor trading fell from 29.7% in the first quarter of 2025 to 25.7% in the first quarter of 2026 and 24.7% in May. The decline reflects a market led by large-cap stocks, stronger non-face-to-face sales efforts by bigger brokerages and the rise of platform-based securities firms. Another factor weighing on its cost competitiveness is the education tax burden tied to exchange-traded fund liquidity-provider trading. Bringing in crypto customers would help diversify earnings now concentrated in stock brokerage.

Bithumb also needs a fresh catalyst. Its market share rose as high as 39.5% on May 18, but had fallen to 24.18% as of July 24. First-quarter operating profit was only 2.9 billion won as trading volume declined. The company posted a net loss of 86.9 billion won after reflecting losses from the disposal of held virtual assets and costs related to sanctions by financial authorities.

For Bithumb, Kiwoom offers both capital and a large retail customer base that could help it regain market share. The two companies would also have room to move early on linked services if spot crypto ETFs, token securities and stablecoins are brought into the regulatory framework. Korea Investment & Securities and Mirae Asset Group, which have already invested in won-based exchanges, are also seeking to link retail channels and expand their digital-asset businesses.

Still, Bithumb’s complex governance structure and regulatory uncertainty remain major hurdles. Bithumb Holdings, which owns 73.56% of the exchange’s operating company, has a shareholder base tangled across multiple entities. Administrative risks also persist, including a partial business suspension and fines imposed by the Financial Intelligence Unit, as well as Bithumb’s renewal filing as a virtual asset service provider.

Another key variable is a bill under discussion that would cap the ownership stake of a major shareholder in a crypto exchange. If a rule is introduced limiting a single shareholder to 20% or 34%, a solo acquisition of management control would become effectively impossible. One financial investment industry official said that, given the regulatory environment, the most realistic path may be for Kiwoom to take a minority stake and deepen its business partnership with Bithumb, or for multiple investors to join through a consortium.