Kiwoom Weighs Investment in Last Major Won-Based Crypto Exchange Bithumb

Kiwoom Securities is reportedly reviewing a plan to secure a stake in Bithumb, South Korea's second-largest won-based virtual-asset exchange. The size of the investment and the stake to be acquired have not been finalized, but the deal could bring substantial cross-selling opportunities for both companies. As the country's flagship retail brokerage, Kiwoom has held the top spot in domestic stock brokerage market share for 21 consecutive years since 2005.

Bithumb, which 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, needs a fresh catalyst to regain its market share. With Kiwoom's financial capacity to invest and its large retail customer base, the two companies could have room to move early on linked services if spot crypto ETFs, token securities, and stablecoins are brought into the regulatory framework.

The deal is not without hurdles, however. Bithumb's complex governance structure and regulatory uncertainty remain major challenges. The company has a shareholder base tangled across multiple entities, and administrative risks persist due to fines imposed by the Financial Intelligence Unit and its renewal filing as a virtual asset service provider.