Latest news with #LeeJung-hoon
Arabian Post
20-05-2025
- Business
- Arabian Post
Bithumb's Market Ascent Fuels Ambitious 2025 IPO Plans
Bithumb, South Korea's second-largest cryptocurrency exchange, has significantly increased its market share, now handling approximately 25% of the nation's crypto trading volume, up from under 10% in 2023. This surge positions the company for a planned Initial Public Offering in the latter half of 2025, with Samsung Securities appointed as the lead underwriter. The exchange's growth strategy included the elimination of transaction fees for all supported digital assets, a move that temporarily boosted its market share to a peak of 72% in early 2024. This aggressive approach allowed Bithumb to momentarily surpass its main competitor, Upbit, which has traditionally dominated the South Korean crypto market. Bithumb's decision to pursue an IPO is not primarily driven by a need for capital infusion. According to its semi-annual report, the company holds financial assets exceeding 400 billion won . Instead, the IPO aims to enhance corporate transparency and governance, thereby rebuilding public trust following past controversies involving its leadership. The exchange has undergone significant leadership changes in preparation for the IPO. Former Chairman Lee Jung-hoon has returned as a registered director, while Jaewon Lee has been appointed as the new CEO of Bithumb Holdings. These changes are part of a broader effort to strengthen the company's governance structure and align with regulatory expectations. Bithumb has also shifted its banking partnership from NH Nonghyup Bank to KB Kookmin Bank, South Korea's largest financial institution. This move is expected to enhance the exchange's credibility and attract a broader customer base, including institutional clients. Despite these advancements, Bithumb faces ongoing regulatory challenges. The Financial Intelligence Unit initiated an on-site inspection in March 2025 to assess the exchange's compliance with anti-money laundering regulations. The outcome of this investigation could significantly impact the company's IPO timeline and investor confidence. See also LockBit Breach Unveils 60,000 Bitcoin Wallets and Affiliate Data Bithumb is considering listing options beyond South Korea, including a potential listing on the U.S. Nasdaq. This consideration arises from the complex regulatory environment in South Korea, where cryptocurrencies are not recognized as legitimate financial products, potentially complicating domestic listing procedures. Financially, Bithumb reported a net profit of $110 million in 2024, reflecting its robust market position and operational efficiency. The exchange's commitment to regulatory compliance and technological enhancements has contributed to its resilience in a volatile market. Arabian Post – Crypto News Network
Korea Herald
08-05-2025
- Business
- Korea Herald
BOK faces growing rate cut dilemma as US Fed stands pat
Widening Korea-US rate gap raises concern over capital outflows, market volatility The US Federal Reserve held its key interest rate unchanged, adding pressure on the Bank of Korea's rate-setting decision later this month. Following a two-day Federal Open Market Committee meeting, the Fed maintained its benchmark lending rate in the 4.25–4.5 percent range. With the decision, the gap between Korea's key rate and the US rate remains at 1.75 percentage points. The Fed's pause puts additional weight on the Bank of Korea, which has kept its policy rate at 2.75 percent since February this year. In its most recent meeting in April, the BOK's monetary policy board held the rate steady, citing concerns about a volatile Korean won. If the BOK cuts the base rate by 0.25 percentage point at its next rate-setting meeting on May 29, the Korea-US rate differential could widen to 2 percentage points — raising the risk of foreign capital outflows. Despite this concern, the BOK is under growing pressure to lower rates to support the country's slowing economy. In the January–March period, Korea's GDP contracted by 0.2 percent quarter-on-quarter due to sluggish domestic consumption and a slowdown in exports. While the BOK projected 1.5 percent GDP growth for the year in its February outlook, the first-quarter contraction has darkened the forecast. On the inflation front, easing consumer prices are giving the BOK more room to consider a rate cut. In April, Korea's consumer prices rose 2.1 percent year-on-year, staying within the 2 percent range for the fourth consecutive month. The central bank's inflation target is 2 percent. 'Don't doubt the possibility of a base rate cut. The BOK can lower the rate depending on the economic circumstances,' BOK Governor Rhee Chang-yong told reporters while attending the Asian Development Bank's annual meeting in Milan. The recent appreciation of the Korean won has also eased pressure on the BOK. After weakening to as low as 1,487 won per US dollar in April, the currency has rebounded to the 1,400 range. On Thursday, the won opened at 1,398 per dollar and hovered around 1,395 as of 2 p.m., reflecting gains in Asian peer currencies amid growing expectations that the US will push for dollar depreciation to address its trade deficit. 'The won had struggled to appreciate against the dollar despite a decline in the dollar index, a key measure of the dollar's strength,' said Lee Jung-hoon, an economist at Eugene Investment & Securities. 'The pace of the won's recent appreciation could be concerning, but the current level is not excessive.' 'Given the current dollar index, the won could strengthen further to the low 1,300 range,' Lee added. While the won's rebound eases some short-term concerns, potential volatility in the foreign exchange market remains. A wider Korea-US interest rate gap could spark increased market instability. 'Volatility in the financial and forex markets could escalate depending on developments in external factors such as US tariff policies, negotiations with major economies and geopolitical risks,' said BOK Senior Deputy Governor Ryoo Sang-dai at a meeting convened shortly after the FOMC decision. silverstar@
