Key Highlights
- Dunamu, the company behind Upbit, recorded H1 2026 revenue of 408.1 billion won, representing a 49.1% year-over-year decrease.
- Bithumb’s revenue contracted 48.7% to 168.8 billion won, with the platform posting its first net loss.
- Declining cryptocurrency trading volumes and reduced market liquidity impacted fee-based revenue at South Korea’s leading platforms.
- Second quarter trading volume across South Korea’s five licensed exchanges decreased 49.5% year over year to $146.43 billion.
- Market participants redirected funds into South Korean stock markets as semiconductor equities powered a KOSPI surge.
South Korea’s dominant cryptocurrency platforms Upbit and Bithumb experienced significant financial setbacks during the opening half of 2026 as market participation declined. The exchanges saw diminished fee-based earnings while investors redirected capital toward equity markets.
Dunamu Posts Significant Revenue Contraction
Upbit parent Dunamu posted total operating revenue reaching 408.1 billion won, approximately $289 million, throughout the initial six months of 2026. This figure represents a substantial decline of 49.1% compared to the 801.9 billion won generated in the corresponding period of 2025.
Dunamu’s operating profit experienced a sharper contraction of 79.7%, settling at 111.5 billion won, while net profit decreased 74.1% to 108.4 billion won. Management attributed the diminished performance to reduced cryptocurrency liquidity and weakening investor confidence throughout digital asset markets.
Bithumb Records Initial Half-Year Deficit
Bithumb disclosed operating revenue totaling 168.8 billion won, marking a 48.7% reduction from the 329.2 billion won achieved one year prior. Operating profit plummeted 83.4% to 14.9 billion won as diminishing transaction volumes eroded platform fee generation.
The platform also documented a net loss reaching 108.7 billion won, contrasting sharply with the 55 billion won profit recorded during the preceding year. Transaction fees continued serving as the primary revenue driver, making financial performance vulnerable to market activity fluctuations.
Broader Market Weakness Pressures Korean Platforms
The revenue challenges emerged as Bitcoin price declined over 30% throughout the first half of 2026, while Ethereum retreated from approximately $3,000 to around $1,600. Postponements in U.S. cryptocurrency regulation, ETF redemptions, and diminished liquidity further suppressed market participation.
South Korean market participants increasingly allocated capital to domestic equities as the KOSPI index strengthened on robust semiconductor sector performance. Aggregate second-quarter trading volume spanning Upbit, Bithumb, Coinone, Korbit, and Gopax declined 49.5% year over year to $146.43 billion.
Despite challenging financial results, both platforms advanced strategic growth initiatives. Dunamu is progressing with a share exchange arrangement involving Naver Financial that would position Upbit within the fintech enterprise and facilitate eventual public market access.
Hana Financial Group secured a 6.55% ownership position in Dunamu while agreeing to collaborate on stablecoin development, blockchain-based remittance solutions, and digital asset offerings. Subsequently, three Samsung-affiliated entities purchased a collective 4% stake, reshaping Dunamu’s domestic shareholder composition.
Bithumb continues preparing for a 2028 initial public offering following previous postponements. The exchange aims to strengthen operational governance, pursue listing approval in 2027, and broaden international reach through strategic alliances, including its recently announced collaboration with SSI Digital in Vietnam.
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