Kiwoom Securities in Talks to Acquire Bithumb Stake Amid Korean TradFi-Crypto Mergers
South Korea’s Kiwoom Securities is reportedly in early-stage negotiations to acquire a stake in Bithumb through a private placement of new shares. The move signals the latest alliance between traditional finance (TradFi) and crypto firms in South Korea as regulatory changes accelerate.
According to a report from Chosunbiz on Monday, the proposed structure involves Bithumb issuing fresh shares directly to Kiwoom via a third-party allotment—a private placement route that bypasses open-market purchases. No terms have been finalized, including stake percentage, investment amount, or valuation.
A Bithumb spokesperson told Chosunbiz: “We are discussing partnerships with various possibilities in the financial sector and multiple companies, but there are no specific matters under review or decided yet.” The statement confirms active talks while leaving room for the deal to evolve or collapse.
Regulatory Push Driving the Deal
The discussions come as South Korea’s Financial Services Commission (FSC) is expected to announce new crypto reforms in July, including a framework for tokenized securities. These rules are set to take effect within the broader capital markets structure starting in 2027.
For Kiwoom Securities, a direct stake in Bithumb provides exposure to crypto trading infrastructure and positions the firm for new regulated products, including security token offerings and potential stablecoin services.
Bithumb’s Listing Strategy
Bithumb is preparing for a potential Kosdaq listing targeted for around 2028, with Samsung Securities serving as lead underwriter and advisor. The exchange has already begun separating its core trading business from other segments—a spin-off structure designed to improve valuation before going public. Bringing in a securities firm with governance credibility supports that strategy directly.
Shareholder Cap Requirements
Pending legislation under South Korea’s Digital Asset Basic Act would cap major shareholder stakes in virtual asset exchanges at 20%, with possible exceptions up to 34%. Bithumb Holdings currently owns approximately 73.56% of the exchange. This gap means Bithumb must significantly dilute its ownership before the rules take effect. A strategic investment from Kiwoom would accelerate that dilution while adding an institutional partner.
Growing Trend of TradFi-Crypto Integration
Kiwoom joins a crowded field of Korean financial institutions moving into crypto equity positions. Hana Bank is pursuing a stake in Dunamu—operator of Upbit—in a deal reported near the $670 million range. Samsung affiliates previously invested approximately $408 million for a 4% stake in Dunamu. OKX Ventures acquired 19.6% of Coinone, and Binance completed its acquisition of Gopax.
Kiwoom now joins Samsung Securities, Mirae Asset, and Korea Investment Securities in competing for crypto infrastructure positions.
What Comes Next
The Kiwoom-Bithumb talks fit a clear pattern: Korean brokerages are locking up exchange stakes before tokenized asset and stablecoin regulations create a defined, regulated market for digital assets. First movers gain both equity upside and a seat at the table when licensing requirements crystallize.
Negotiations remain preliminary and could shift quickly depending on FSC announcements in July and Bithumb’s listing timeline.