Competition Among South Korean Exchanges Heats Up As Bithumb Unveils Ambitious Plans

Bithumb, a popular South Korean cryptocurrency exchange, aims to achieve a new milestone by becoming the inaugural digital asset company to undergo an initial public offering (IPO) on the South Korean stock market. Established in 2014,  the exchange currently boasts a 24-hour trading volume of approximately $580 million, according to data by CoinGecko at the time of this publication.

Reports via local news outlet Edaily on November 12th indicate that Bithumb is actively preparing for an IPO on KOSDAQ, the South Korean equivalent to Nasdaq, with a projected listing date in the latter half of 2025.

Choosing the right people

While Bithumb has not officially confirmed the IPO, the company did disclose the recent selection of an underwriter, a company responsible for ensuring the financial stability of another entity typically before it goes public. It has also been reported that Samsung Securities was reportedly chosen as the potential underwriter for the IPO.

In a noteworthy development, the former chairman of Bithumb, Lee Jeong-hoon, has returned to the company as its registered director. Simultaneously, CEO Lee Sang-jun is reportedly no longer being considered for a position on the board of directors due to an ongoing investigation into alleged bribery.

Going public

Sources familiar with the matter have asserted that Bithumb deciding to go public is motivated by a desire to avoid ceding additional market share to Upbit, the biggest cryptocurrency exchange in South Korea. Presently, Bithumb holds the position of the second largest crypto exchange in the country in terms of daily trading volume. In July, Upbit surpassed Coinbase and Binance in monthly trading volumes for the first time.

Furthermore, both Upbit and Bithumb faced scrutiny in May when South Korean authorities conducted raids on their offices, investigating alleged fraudulent crypto trading on behalf of a local lawmaker. In February, Kang Jong-hyun, a significant shareholder in Bithumb and suspected real owner, was arrested on embezzlement charges following a lengthy police investigation into his purportedly illicit activities.

Kang Jong-hyun, aged 41, is the elder brother of Kang Ji-yeon, the head of Bithumb affiliate Inbiogen, which holds the largest share in Vidente, the principal Bithumb shareholder with a 34.2% stake.