In a clear sign of the evolving relationship between traditional finance and digital assets in South Korea, two major banking developments have emerged, showcasing contrasting strategies. KB Kookmin Bank has renewed its critical real-name account partnership with cryptocurrency exchange Bithumb, but with a notably shortened six-month term, signaling heightened caution. Concurrently, Jeonbuk Bank has commenced building a proprietary cryptocurrency wallet in a strategic alliance with exchange Gopax, marking an aggressive push into digital asset custody.
The renewal of the KB Kookmin-Bithumb partnership, reported by the Seoul Shinmun on March 15, 2025, represents a strategic shift. Traditionally operating on standard one-year terms, the bank has halved the contract period to six months. This decision reflects increased risk assessment protocols, allowing for more frequent review cycles amid evolving regulations and operational risks. The move comes at a critical juncture following South Korea's stringent post-Terra-LUNA collapse regulations, with the Financial Services Commission (FSC) mandating enhanced AML, KYC, and transaction monitoring. Recent incidents at Bithumb, including a police investigation and a large-scale erroneous Bitcoin payout, have further amplified risk concerns for banking partners.
In contrast, Jeonbuk Bank's initiative, first reported by the Seoul Economic Daily on March 21, 2025, is a landmark foray into direct digital asset services. The bank is developing a secure wallet that will allow customers to hold, send, and receive cryptocurrencies directly through their banking interface. This is enabled by a partnership with Gopax, a licensed Virtual Asset Service Provider (VASP), which provides the essential real-name verified deposit and withdrawal account infrastructure required by law. Gopax's majority stakeholder, global exchange giant Binance (with a 67.45% stake acquired in 2023), indirectly supports this venture, bringing global expertise and security protocols to the partnership.
Financial analysts observe that KB Kookmin's cautious, conditional approach and Jeonbuk Bank's innovative, integrative model reflect the broader spectrum of strategies being adopted by traditional financial institutions. The shortened term for Bithumb provides the bank with leverage for frequent evaluation of the exchange's compliance and operational improvements. Meanwhile, Jeonbuk Bank's wallet aims to leverage customer trust in a bank brand to boost mainstream adoption, offering a potentially more secure custody model compared to standard exchange wallets.
These developments carry significant implications for South Korea's cryptocurrency ecosystem. Real-name bank accounts are essential infrastructure for exchanges; conditional renewals like KB Kookmin's could influence liquidity and user accessibility. Jeonbuk Bank's move pressures other regional and national banks to accelerate their digital asset plans to avoid losing market share. Both events occur alongside the ongoing debate in the National Assembly over comprehensive digital asset legislation, which will further shape the future of banking-crypto relationships in the country.
