South Korea's Fair Trade Commission approved Mirae Asset Consulting's acquisition of Korbit on the previous day, as domestic crypto exchanges pursue strategic partnerships with securities firms. Korea Investment Securities secured a 20% stake in Coinone alongside global exchange OKX, while Naver Financial's merger with Dunamu—operator of market-leading Upbit—remains under FTC review with the comprehensive stock exchange deadline extended to year-end. Bithumb, the country's second-largest exchange, has not secured a strategic financial partner despite Kiwoom Securities reviewing a potential equity investment via third-party allocation as disclosed on May 29. Industry observers attribute Bithumb's investor challenges to its multilayered ownership structure and ongoing regulatory proceedings. The consolidation reflects securities firms' efforts to establish footholds in digital asset markets ahead of institutional framework development.
FTC Approves Mirae Asset-Korbit Merger as Competitors Advance Partnerships
The Fair Trade Commission approved Mirae Asset Consulting's Korbit acquisition on the previous day, determining that Korbit's approximately 0.5% market share poses minimal competitive concerns for securities or asset management sectors. Korea Investment Securities described its Coinone investment as strategic preparation for tokenized securities and stablecoin institutionalization. The FTC is conducting detailed review of the Naver Financial-Dunamu merger's competitive impact, given Upbit's position as the country's largest crypto exchange by trading volume and Naver Financial's leadership in mobile payments. Naver recently extended its comprehensive stock exchange timeline to year-end while awaiting the FTC decision.
Bithumb Holdings' Multilayered Ownership Structure Complicates Investment Decisions
Bithumb's largest shareholder is Bithumb Holdings with 73.56% ownership. Bithumb Holdings' largest shareholder is DAA holding 34.2%. DAA is a corporation where former Bithumb Holdings and Bithumb Korea board chairman Lee Jung-hoon exercises primary control, with additional major shareholders including Vidente and T Scientific forming a multilayered ownership structure. Market participants view this structure as requiring consideration of investment decision-making processes, future management participation scope, and potential governance restructuring. If Kiwoom Securities' investment proceeds via third-party allocation, existing shareholders' stakes would be diluted proportionally to issuance size, necessitating evaluation of impacts on management rights and governance beyond simple ownership percentage changes.
Bithumb Faces VASP Renewal Review and Multiple Regulatory Proceedings
Bithumb is currently undergoing Virtual Asset Service Provider renewal review and pursuing administrative litigation regarding Financial Intelligence Unit sanctions. The Financial Supervisory Service's inspection results following the Bitcoin overpayment incident earlier this year remain incomplete. Financial firms prioritize internal controls and risk management systems when evaluating strategic investments in exchanges, making these uncertainties potential decision burdens. Former chairman Lee Jung-hoon received final Supreme Court acquittal in a 2018 criminal case related to Bithumb's acquisition agreement, but a civil lawsuit regarding down payment return—which resulted in plaintiff defeat at recent appellate level—currently awaits Supreme Court review following appeal filing. Potential Digital Asset Basic Act provisions under National Assembly discussion include exchange major shareholder eligibility and ownership regulations that could affect governance structures if enacted.
Q1 Revenue Decline and IPO Postponement to 2027-2028
Bithumb's Q1 revenue decreased significantly year-over-year due to reduced trading volumes, with the company turning to net loss. The initial public offering timeline has been postponed beyond original plans. The company plans to pursue listing in 2027-2028 after monitoring institutional developments including the Digital Asset Basic Act. An industry official stated that recent securities firms' digital asset market entries reflect strategic positioning to connect institutional finance with digital assets rather than purely financial investment, requiring comprehensive evaluation of market share, governance structure, regulatory risks, internal controls, and growth potential. The official added that as market consolidation accelerates through Mirae Asset-Korbit, Korea Investment-Coinone, and Naver-Dunamu partnerships, Bithumb faces the critical challenge of securing strategic investors while resolving market uncertainties to maintain competitiveness.
FAQ
What did South Korea's Fair Trade Commission approve regarding Mirae Asset and Korbit?
The Fair Trade Commission approved Mirae Asset Consulting's acquisition of Korbit on the previous day, determining that Korbit's approximately 0.5% market share poses minimal competitive concerns for securities or asset management sectors.
Why has Bithumb not secured a strategic financial partner?
Industry observers attribute Bithumb's investor challenges to its multilayered ownership structure—where Bithumb Holdings holds 73.56% and DAA controls 34.2% of Bithumb Holdings—and ongoing regulatory proceedings including VASP renewal review, administrative litigation regarding FIU sanctions, and FSS inspection results following a Bitcoin overpayment incident.
When does Bithumb plan to pursue its initial public offering?
Bithumb plans to pursue listing in 2027-2028 after monitoring institutional developments including the Digital Asset Basic Act, postponing the IPO beyond original plans.
