Kiwoom Securities seeks Bithumb stake as Korean brokers push into crypto

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Kiwoom seeks Bithumb stake

Highlights

Kiwoom Securities is in talks to buy a Bithumb stake.
The deal could be structured through new shares.
Korean brokers are moving closer to crypto platforms.
Bithumb is preparing for a Kosdaq listing.

Kiwoom enters Bithumb talks

Kiwoom Securities and Bithumb are discussing a third-party share allocation, according to Chosun Biz. Under that structure, Bithumb would issue new shares and Kiwoom would acquire them.

The exact investment size and stake have not been finalized. Kiwoom’s move would place it alongside other large securities firms that have shown interest in securing exposure to crypto exchanges, including Samsung Securities, Mirae Asset Securities and Korea Investment & Securities.

South Korea is preparing for broader institutionalization of tokenized securities and stablecoins, creating incentives for securities firms to build links with digital-asset platforms. Crypto exchanges, in turn, can benefit from the capital, compliance systems and internal controls of established financial companies.

Kiwoom shares rose 7.99% to 331,000 won on Monday, according to the figures in the report, underscoring investor interest in the company’s possible crypto expansion.

Regulation adds pressure on ownership

South Korea’s planned second-stage virtual asset law is expected to include rules limiting major shareholder stakes in crypto exchanges. Financial authorities are discussing a framework that would generally cap such holdings at 20%, with exceptions allowing up to 34%.

That would matter directly for Bithumb. Its largest shareholder, Bithumb Holdings, currently owns 73.56%. If the new rules are implemented, the holding company could be forced to reduce its stake by more than 50 percentage points.

Bithumb has long faced questions over its ownership structure. Some of those concerns eased after founder Lee Jung-hoon’s side became the largest shareholder of Bithumb Holdings through DAA, helping settle disputes around management control and beneficial ownership. Still, the remaining stake held by Vidente remains a variable, especially as the company has sought to sell its Bithumb Holdings shares while facing delisting risk over alleged embezzlement and breach of trust.

Bithumb’s listing plan gains a new variable

The Kiwoom talks could become important for Bithumb’s planned public offering. The exchange has been preparing for a Kosdaq listing with Samsung Securities as lead underwriter, while considering a split between its exchange business and new-business holding unit, Bithumb A, to improve valuation.

The central question is whether Kiwoom’s investment would function as a pre-IPO deal and how it would fit into the listing timetable. Bithumb has said it is discussing partnerships with financial firms and other companies, but no specific decision has been made. Even without a final agreement, the talks show that Korea’s brokerage industry now sees crypto infrastructure as part of its future financial market strategy.

We have previously highlighted that police are investigating Bithumb's chief over the hiring of the lawmaker's son.

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