Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
New GOPAX CEO expected to smooth Binance's entrance into Korea
A promotional image of GOPAX / Screenshot from GOPAX's Facebook
By Lee Yeon-woo
Cho Young-joong, CEO of CityLabs and GOPAX / Courtesy of GOPAX
Cryptocurrency exchange GOPAX has recently appointed Cho Young-joong, the CEO of CityLabs, as its new head. Cho, who will also continue his role at CityLabs, is the fourth CEO to assume office at GOPAX this year alone.
After earning his MBA from the Korea Advanced Institute of Science and Technology (KAIST), he joined various domestic IT firms and has been leading CityLabs since 2018.
The KOSDAQ-listed company focuses primarily on smart city businesses utilizing intelligent transportation systems. However, it aims to expand its scope to include blockchain solutions. On Sept. 22, the company acquired an 8.55 percent stake in Streami, the operator of GOPAX, with an investment of 5.4 billion won ($3.98 million).
Market watchers believe that Binance, the world's largest crypto exchange, has found a way into the Korean virtual asset market, given that financial authorities in Korea have been withholding approval for the company's acquisition of the nation's fifth-largest exchange since March.
Binance is currently the largest shareholder of GOPAX with a 72.26 percent stake. However, it's projected that CityLabs will increase its ownership, potentially becoming the majority shareholder, with Binance still retaining a principal stake.
If CityLabs' presence grows as projected, financial authorities might reconsider their stance toward Binance. The delays were attributed to the need to evaluate Binance's qualifications as a major shareholder and to investigate potential financial regulation violations by Binance's foreign executives in GOPAX.
"We plan to examine the profitability structure of GOPAX, our primary business sector, and focus on restructuring for operational stability," Cho said. "Given the recent favorable external conditions, including the cryptocurrency market turning bullish, we will also work on re-establishing a medium- to long-term profit model derived from user expansion."