South Korea’s cryptocurrency industry continues to attract strong interest from traditional financial institutions, with brokerage giant Kiwoom Securities reportedly in talks to acquire a stake in one of the country’s largest digital asset exchanges.
According to local media reports, Kiwoom is negotiating an investment in Bithumb through a planned purchase of newly issued shares. If completed, the deal would further strengthen the growing relationship between South Korea’s traditional financial sector and its rapidly evolving cryptocurrency market.
Kiwoom and Bithumb Begin Investment Talks
According to a report by ChosunBiz, Kiwoom Securities and Bithumb are discussing a potential investment through a third-party share allocation.
Under the proposed structure, Bithumb would issue new shares that Kiwoom would purchase directly.
The discussions are still in the early stages, and neither company has finalized the size of the investment or the percentage of ownership Kiwoom would receive.
While no agreement has been announced, the talks highlight increasing institutional interest in South Korea’s cryptocurrency industry.
Traditional Financial Firms Expand Into Crypto
Kiwoom’s reported investment follows a broader trend of major financial institutions increasing their exposure to digital asset businesses.
Several high-profile investments have been announced in recent months.
Among them:
- Hana Bank, one of South Korea’s largest commercial banks, revealed plans to acquire a $670 million stake in Dunamu, the parent company of crypto exchange Upbit.
- Three Samsung affiliates reportedly agreed to purchase approximately $407.7 million worth of Dunamu shares, securing a combined 4% ownership stake.
- OKX Ventures announced plans to acquire a 19.6% stake in cryptocurrency exchange Coinone.
- Binance completed its long-awaited acquisition of Gopax after navigating several years of regulatory approvals.
These investments demonstrate growing confidence in South Korea’s regulated cryptocurrency sector despite ongoing market volatility.
Bithumb Continues Preparing for a 2028 IPO
The investment discussions also come as Bithumb continues preparing for its planned public listing.
The exchange previously signed an IPO advisory agreement with Samjong KPMG, which will remain in effect through the end of 2027.
Earlier this year, Chief Financial Officer Jeong Sang-gyun confirmed that Bithumb expects to launch its initial public offering in 2028.
Securing strategic institutional investors before going public could strengthen the company’s financial position while improving investor confidence ahead of the listing.
Regulatory Challenges Continue
Although Bithumb is pursuing new investment opportunities, the company has also faced increased regulatory scrutiny.
Recently, South Korea’s Personal Information Protection Commission (PIPC) fined the exchange 210 million won (approximately $136,000) for violating regulations governing overseas transfers of personal information.
According to the regulator, Bithumb transferred certain user data overseas without fully complying with the country’s Personal Information Protection Act.
In addition to the financial penalty, regulators instructed the exchange to improve its procedures for handling cross-border data transfers.
Earlier Anti-Money Laundering Enforcement
The privacy investigation followed another significant enforcement action involving Bithumb’s anti-money laundering (AML) controls.
Earlier, South Korean regulators imposed a 36.8 billion won penalty after identifying several compliance deficiencies.
The reported issues included:
- Weak customer due diligence procedures
- Insufficient transaction monitoring
- Transfers involving unregistered overseas virtual asset service providers
- Compliance shortcomings related to AML regulations
These enforcement actions reflect South Korea’s increasingly strict oversight of cryptocurrency exchanges as regulators seek to strengthen consumer protection and financial integrity.
South Korea Updates Blockchain Privacy Rules
Alongside enforcement efforts, South Korean authorities have continued refining the country’s regulatory framework for blockchain technology.
The Personal Information Protection Commission recently introduced updated blockchain privacy guidelines requiring companies to consider personal data protection during the design and development of blockchain-based services.
The new guidance aims to ensure blockchain innovation develops alongside stronger privacy safeguards for users.
New Digital Asset Law Could Reshape Exchange Ownership
South Korean lawmakers are also working on the Digital Asset Basic Act, a comprehensive legislative framework designed to regulate the country’s cryptocurrency industry.
Among its proposed provisions are new ownership limits for cryptocurrency exchanges.
Under the current proposal:
- A single shareholder would generally be limited to owning 20% of a cryptocurrency exchange.
- Ownership of up to 34% could be permitted under specific conditions that are still being debated by lawmakers.
If adopted, the legislation could significantly influence future investment structures for crypto exchanges operating in South Korea.
Institutional Interest in Crypto Continues Growing
Despite stricter regulations, South Korea remains one of the world’s most active cryptocurrency markets.
Large banks, brokerages, investment firms, and international crypto companies continue seeking opportunities to expand their presence in the country’s digital asset ecosystem.
The reported discussions between Kiwoom Securities and Bithumb reflect this broader trend, as traditional financial institutions increasingly view regulated cryptocurrency businesses as long-term strategic investments.
With Bithumb preparing for its IPO and lawmakers advancing new crypto regulations, the exchange is entering a critical period that could shape its future position within South Korea’s financial industry.
The Bottom Line
Kiwoom Securities’ reported negotiations to acquire a stake in Bithumb highlight the growing convergence between traditional finance and the cryptocurrency industry in South Korea.
Although the investment remains under negotiation, it follows a series of major institutional investments into the country’s leading crypto exchanges and comes as Bithumb prepares for its planned 2028 initial public offering.
At the same time, the exchange continues navigating increased regulatory scrutiny over data protection and anti-money laundering compliance while adapting to proposed legislation that could reshape ownership rules across South Korea’s digital asset market.
If the investment proceeds, it would represent another significant step toward deeper institutional participation in one of Asia’s most active cryptocurrency markets.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. The reported investment discussions remain ongoing, and no final agreement has been announced by either party.
