South Korean crypto exchange acquires stake in major bank

Dunamu — the owner of Upbit, South Korea’s largest cryptocurrency exchange — became a shareholder of Woori Bank, one of the largest banks in South Korea.

Fast facts

• Dunamu purchased 1% of Woori Financial from Korea Deposit Insurance Corporation, which recently put 9.3% of its shares in Woori on auction. Another 4% went to Eugene Private Equity, 2.3% to KTB Asset Management, and 1% each to Align Partners and the Woori Employee Union.

• The media touted Dunamu’s acquisition as a significant rise in the status of virtual asset businesses in South Korea’s finance world. Despite the regulatory clampdown on virtual asset businesses earlier this year, Dunamu has managed to accumulate more than a trillion Korean won, or about US$900 million worth of cash equivalents by the end of last year. It is reported that Dunamu spent 97.2 billion won (about US$81.7 million) on buying the 1% share — it was also reported that Upbit was the highest bidder.

• Dunamu told the local media that it “participated as an investor considering the future development and investment stability of the financial industry,” and that the company plans to hold the share long-term.

• Meanwhile, Dunamu’s Upbit is undoubtedly the largest virtual asset exchange in South Korea, with more than 80% of the total trade volume happening at the exchange at one point. Its trade volume in the last 24 hours exceeded US$7 billion, according to CoinMarketCap.