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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
17-03-2025
- Business
- Korea Herald
Nextrade expands stock trading
South Korea's first alternative stock trading system, Nextrade, also known as NXT, has expanded its trading service to 110 stocks, following the smooth launch of its operations earlier this month. The system opened to the public on March 4, initially offering 10 different stocks for trading, and expanded to 110 on Monday. From the Kospi, newly listed stocks include Korean retail giant Shinsegae, energy-to-construction giant GS, top ramyeon maker Nongshim, Hyundai E&C and Samsung Securities. Newly available Kosdaq stocks include entertainment powerhouses Studio Dragon and CJ ENM, as well as biopharmaceutical company Medytox. From its launch on March 4 until March 13, 10 stocks were available for trading on Nextrade, which recorded a transaction volume during that time of 131.5 billion won ($90 million). On the Korea Exchange, the main bourse operator, the transaction volume for the same 10 stocks over that period reached 494.8 billion won, putting Nextrade's market share at around 25 percent. Of the shares, YG Entertainment was the most traded stock on the alternative platform, with a volume of 45.7 billion won during the period, followed by Dongkook Pharmaceutical at 32.2 billion won and S-Oil at 21.6 billion won. However, in its initial days, Nextrade failed to attract institutional and foreign investors, with most transactions coming from retail investors. From March 4 to 7, the trading volume on Nextrade was 79.9 billion won, with retail investors accounting for 78.1 billion won, or 97.8 percent of the total. Trading by institutional investors and foreign investors stood at 1.2 billion won and 460 million won, respectively. 'Retail investors accounted for most of the trading volume for both the Kospi and the Kosdaq markets on Nextrade,' analyst Jeon Kyun from Samsung Securities said. 'Most retail investors chose to trade via the Smart Order Routing system based on the (brokerage firms') duty of best execution.' Brokerage houses are required to fulfill the duty of best execution, meaning they evaluate which bourse operator can better serve customers in terms of price or stability. Trades are executed via an automated system called Smart Order Routing. "More investors are likely to use Nextrade to take advantage of companies updating their regulatory filings after the main market closes," analyst Shin Min-sub from DS Investment & Securities said. "Nextrade's market share has the potential to increase as competition to bring down commission rates heats up and investors are drawn to the alternative system for its cheaper fees." From March 24, Nextrade will expand the range of shares for trading to 350 stocks, including market bellwethers Samsung Electronics and SK hynix. The number will increase to 800, accounting for over 30 percent of listed companies here, on March 31.
Korea Herald
27-01-2025
- Business
- Korea Herald
Big brokerage firms tipped to have pocketed decent earnings in 2024
South Korea's major brokerage houses are expected to have racked up decent earnings last year on the back of increased trading of overseas stocks, industry sources said Monday. According to the data from market tracker FnGuide, the combined operating income of the country's big five brokerage houses in 2024 is estimated at 5.66 trillion won ($3.94 billion), sharply up from the previous year's 3.37 trillion won. Korea Investment & Securities is expected to have posted the biggest operating income of 1.27 trillion won, followed by Samsung Securities with 1.19 trillion won, Mirae Asset & Securities 1.15 trillion won, Kiwoom Securities 1.23 trillion won and NH Investment & Securities 923 billion won, the data showed. Their stellar performances were partly driven by commission fees from increased trading of overseas stocks by retail investors. The average daily turnover of the local stock market stood at 19.1 trillion won last year, up 2 percent from a year earlier, while that for overseas stocks by Koreans jumped 84 percent on-year to $53.1 billion. Also, local securities firms took less reserve last year than a year earlier against exposure to risky construction development projects, helping jack up their bottom lines. This year, their performances are widely expected to improve further on the back of expected monetary easing cycles and reduced risks against shaky construction projects. (Yonhap)
