- South Korea's largest exchanges, Upbit and Bithumb, both saw revenue fall by around 50% in H1 2026.
- Upbit parent Dunamu's revenue fell 49.1%, while Bithumb's fell 48.7%.
- Profits dropped even more sharply at both exchanges.
- Lower crypto prices, weaker liquidity and capital moving into Korean stocks hurt trading activity.
- Both exchanges are also restructuring and preparing for potential IPOs.
South Korea's two biggest crypto exchanges are feeling the impact of the broader market downturn.
Upbit parent company Dunamu and Bithumb both reported roughly 50% declines in revenue during the first half of 2026 as trading activity and liquidity weakened.
Dunamu's operating revenue fell 49.1% year-over-year to 408.1 billion won, around $289 million.
Its operating profit dropped even more sharply, falling nearly 80% to 111.5 billion won, while net profit declined 74.1% to 108.4 billion won.
Bithumb reported a similar decline.
Its revenue fell 48.7% to 168.8 billion won, while operating profit plunged 83.4% to 14.9 billion won.
Bithumb also swung into a 108.7 billion won net loss, compared with a 55 billion won profit during the same period last year.
Crypto activity is shrinking
The weaker results reflect a broader contraction in South Korea's crypto market.
Bitcoin fell more than 30% during the first half of the year, while Ethereum performed even worse.
Lower prices were accompanied by weaker liquidity and investor sentiment, while negative developments such as delays to the Clarity Act, Strategy selling bitcoin and crypto ETF outflows added further pressure.
At the same time, Korean investors had another attractive destination for their capital.
The country's benchmark KOSPI more than doubled during the first half of 2026, driven largely by semiconductor stocks such as Samsung Electronics and SK Hynix amid strong demand for AI-related memory chips.
That rally appears to have pulled some capital away from crypto.
Combined trading volume across South Korea's five licensed exchanges fell nearly 50% year-over-year in Q2 to around $146 billion.
Exchanges are preparing for the next cycle
Despite the downturn, both Upbit and Bithumb are actively restructuring their businesses.
Dunamu is working on a major share swap with Naver Financial, which could make it a wholly owned subsidiary of the Korean internet giant.
The combined company is reportedly considering a public listing, potentially on Nasdaq, within five years.
Traditional financial groups are also taking stakes in Dunamu. Hana Financial Group acquired 6.55%, while three Samsung affiliates collectively acquired around 4%.
Bithumb is preparing for an IPO targeted for 2028 and is working on strengthening its internal controls ahead of a potential listing.
The weaker results highlight how closely South Korea's crypto exchanges remain tied to trading activity, but their restructuring efforts suggest they are positioning for the next period of market growth.
