Key Takeaways:
Kiwoom Securities is in talks to acquire a stake in Bithumb, South Korea's second-largest crypto exchange, as five traditional financial firms have now moved to buy into the country's digital asset platforms since February.
The brokerage and Bithumb are discussing a third-party allotment of new shares, according to Chosun Biz. Under the structure, Bithumb would issue new shares directly to Kiwoom, giving the broker an equity position. The investment amount and stake size have not been finalized, and the transaction remains under negotiation.
"Kiwoom is exploring partnerships with different financial and corporate groups, but no specific deal has been reviewed or completed," a Bithumb official said, according to local media.
The talks follow a wave of TradFi-crypto deals in South Korea. Korea Investment & Securities and OKX Ventures agreed on May 29 to invest 160 billion won ($106 million) for a 19.6% stake in Coinone. A day earlier, Samsung Securities, Samsung SDS and Samsung Card acquired a combined 4% of Dunamu — operator of top exchange Upbit — for 612.8 billion won ($408 million). Hana Financial Group bought a 6.55% stake in Dunamu from Kakao Investment for more than $668 million on May 15. In February, Mirae Asset Consulting took control of Korbit, acquiring a 92.06% stake for 133.48 billion won ($93 million).
The combined investment across the five deals exceeds $1.2 billion.
The activity comes as South Korea's Financial Services Commission prepares to announce tokenized securities regulatory reforms in July, with the amended Capital Markets Act and Electronic Securities Act scheduled to take full effect on Feb. 4, 2027. The framework would bring blockchain-based investment products under the country's capital markets regime for the first time.
For Kiwoom, an equity stake in Bithumb offers a lower-risk entry into crypto than building a standalone platform. The exchange ranks behind only Upbit in domestic market share, CoinGecko data shows, and has spent years preparing for a potential public listing — though recent reports suggest the IPO timetable may now extend beyond 2028.
Ownership rules could reshape Bithumb's structure
The final terms of any Kiwoom deal may depend on South Korea's evolving ownership rules for crypto exchanges. Regulators are considering capping major shareholder stakes at 20%, with possible exceptions allowing holdings of up to 34%. That matters for Bithumb because its largest shareholder controls more than 70%, according to local reports — a concentration that could become noncompliant under stricter rules.
A strategic investment from Kiwoom would help Bithumb diversify its shareholder base ahead of any future listing. It would also bring institutional credibility to an exchange that has faced regulatory setbacks, including a 36.8 billion won penalty tied to anti-money laundering compliance and a 210 million won fine over overseas data transfer violations.
The broader implication is structural. South Korea remains one of the world's most active crypto trading markets, with retail investors heavily engaged in spot and altcoin trading. As brokerages treat exchanges as strategic infrastructure rather than speculative assets, the line between traditional finance and crypto in the country is narrowing — and the next phase of growth may be led by regulated financial giants, not native crypto firms alone.
This article is for informational purposes only and does not constitute investment advice.
