South Korea’s two largest cryptocurrency exchanges, Upbit and Bithumb, reported sharp earnings declines in the first half of 2026 as weaker digital asset trading activity cut deeply into fee income. Upbit parent Dunamu posted operating revenue of 408.1 billion won, down 49.1% from 801.9 billion won a year earlier. Operating profit fell 79.7% to 111.5 billion won, while net profit dropped 74.1% to 108.4 billion won.
Bithumb faced similar pressure, with operating revenue falling 48.7% to 168.8 billion won from 329.2 billion won previously. Its operating profit declined 83.4% to 14.9 billion won, and the exchange swung to a net loss of 108.7 billion won, reversing a 55 billion won profit from the prior year.
The downturn reflected weaker crypto market conditions. Bitcoin fell more than 30% during the first half, dropping from approximately $90,000 to around $60,000. Ethereum declined from roughly $3,000 at the start of 2026 to about $1,600 by midyear. Delays to U.S. crypto legislation, ETF outflows, and reduced liquidity also weighed on investor sentiment and trading volumes.
South Korean investors increasingly shifted capital toward domestic equities, with the KOSPI rallying on strong semiconductor demand. Samsung Electronics and SK Hynix attracted significant investment amid rising global demand for artificial intelligence memory chips. Combined second-quarter trading volume across Upbit, Bithumb, Coinone, Korbit, and Gopax fell 49.5% year over year to $146.43 billion, according to CoinGecko data cited by Bitwatch.
Despite weaker earnings, both exchanges continued long-term expansion plans. Dunamu is processing a share swap with Naver Financial that would make it a wholly owned subsidiary, with a possible Nasdaq listing within five years. Hana Financial Group acquired a 6.55% stake in Dunamu, while three Samsung affiliates purchased a combined 4% holding. Bithumb is preparing for a targeted 2028 IPO, plans to submit a preliminary listing review in 2027, and entered discussions with Kiwoom Securities for a stake purchase. Bithumb also partnered with SSI Digital as part of its expansion into Vietnam.
