South Korea’s crypto giants see profits plunge as trading slumps

South Korea’s two largest cryptocurrency exchanges, Upbit and Bithumb, reported sharp declines in revenue and earnings in the first half of 2026 as weaker digital-asset prices and reduced trading activity weighed on their core businesses.

Upbit operator Dunamu reported consolidated operating revenue of 408.1 billion won ($289 million), down 49.1% from 801.9 billion won a year earlier. Operating profit plunged 79.7% to 111.5 billion won ($79 million), while net profit fell 74.1% to 108.4 billion won ($77 million).

Bithumb recorded a similar downturn. First-half operating revenue dropped 48.7% to 168.8 billion won ($120 million), while operating profit fell 83.4% to 14.9 billion won ($11 million). The exchange swung to a net loss of 108.7 billion won ($77 million), compared with a profit of 55 billion won ($39 million) a year earlier.

The weaker results followed a difficult first half for major cryptocurrencies. Bitcoin fell more than 30%, from around $90,000 at the beginning of the year to approximately $60,000 by the end of June, while Ethereum declined from about $3,000 to roughly $1,600.

“The recent decline in performance is attributed to a contraction in liquidity across the global digital asset market, which has led to a weakening of investor sentiment,” Dunamu said.

South Korea’s crypto market also faced competition from a booming domestic stock market. The benchmark KOSPI more than doubled during the first half, driven by strong demand for AI-related memory chips produced by companies including Samsung Electronics and SK Hynix.

Combined second-quarter trading volume across South Korea’s five licensed exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — fell 49.5% year-on-year to $146.43 billion.

Despite the downturn, both exchanges are pursuing strategies aimed at reducing their reliance on crypto trading and preparing for future stock-market listings.

Dunamu is advancing a share-swap deal with Naver Financial that would make it a wholly owned subsidiary of the fintech company. The combined business could pursue a public listing, potentially on Nasdaq, within five years.

Bithumb, meanwhile, is targeting an IPO in 2028 and plans to strengthen internal controls before beginning the preliminary listing review process in 2027. The exchange is also seeking international expansion, including through a partnership with SSI Digital to enter Vietnam.

The moves reflect growing efforts by South Korea’s leading crypto platforms to diversify their businesses and strengthen their financial foundations amid persistent volatility in digital-asset markets.

By Vafa Guliyeva