South Korean Brokerage Kiwoom Securities Pursues Major Bithumb Investment Deal

Key Points

• Major brokerage firm Kiwoom Securities has entered negotiations to purchase an equity position in Bithumb, South Korea’s second-largest cryptocurrency trading platform, through a fresh equity issuance.
• Terms including investment amount and ownership percentage remain undetermined as negotiations continue between both parties.
• This development comes after Hana Bank’s substantial $670 million investment in Dunamu and Samsung group companies securing a collective 4% ownership position in the same firm.
• Bithumb has postponed its public listing plans to 2028 following a significant February 2026 technical malfunction that erroneously created 620,000 Bitcoin and triggered market volatility.
• Lawmakers in South Korea are advancing legislation through the Digital Asset Basic Act that could restrict individual shareholder ownership in crypto platforms to between 20–34%.

South Korea’s established financial sector is aggressively pursuing ownership stakes in the nation’s digital asset exchanges. Kiwoom Securities, ranking among the country’s premier securities houses, has initiated discussions to secure an equity position in Bithumb, which holds the position as South Korea’s second-largest cryptocurrency platform by transaction volume.

The proposed transaction framework centers on a third-party directed share allocation mechanism. Under this arrangement, Bithumb would create and issue fresh equity, which Kiwoom Securities would then acquire. Neither the monetary value of the proposed investment nor the resulting ownership percentage has been finalized at this stage.

Bithumb representatives acknowledged ongoing conversations with several financial sector entities regarding possible collaborative arrangements, while emphasizing that no binding agreements have been reached. Kiwoom Securities has refrained from issuing public statements on the matter.

Financial Institutions Rush Toward Crypto Ownership

Kiwoom Securities is far from alone in pursuing cryptocurrency exchange investments. During the previous month, Hana Bank—one of the nation’s four largest banking institutions—disclosed plans to secure a $670 million equity stake in Dunamu, the parent organization behind Upbit, South Korea’s dominant crypto trading venue.

Following closely behind, three Samsung-affiliated companies revealed their intention to purchase approximately $407.7 million in Dunamu equity, establishing a combined ownership stake of 4%.

International market participants have likewise entered the competitive landscape. OKX Ventures declared in May its commitment to acquire a 19.6% ownership position in Coinone. Meanwhile, Binance successfully finalized its purchase of Gopax exchange following extended regulatory approval processes.

Kiwoom Securities has been systematically expanding its digital asset capabilities through KDX, a collaborative consortium that includes the Korea Exchange, Kyobo Life, and KakaoPay Securities. This partnership is actively developing a compliance-focused infrastructure for digital asset transactions.

Technical Failures Shadow Bithumb’s Reputation

Bithumb carries notable operational challenges from recent events. A February 2026 internal system malfunction resulted in the erroneous distribution of approximately 620,000 phantom Bitcoin across customer accounts. This technical breakdown precipitated a sharp market correction that temporarily drove Bitcoin valuations down to roughly $55,000.

The episode significantly undermined Bithumb’s regulatory credibility and forced postponement of its capital markets debut. Though the exchange had executed an IPO preparation agreement with Samjong KPMG, the public offering timeline has been extended to no sooner than 2028.

Despite these operational setbacks, Bithumb continues pursuing expansion initiatives. In March 2026, the platform executed a memorandum of understanding with SSI Digital to evaluate establishing a digital asset exchange operation in Vietnam.

Regarding the legislative landscape, South Korean authorities are crafting the Digital Asset Basic Act. Though the proposed legislation has experienced implementation delays, parliamentary leaders intend to advance the measure during the latter portion of 2026. A notable provision under consideration would establish a 20% ceiling on individual shareholder stakes in cryptocurrency exchanges, with potential allowances extending to 34% under designated exceptional conditions.

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