Economy - The Korea Times

Privacy watchdog fines Bithumb $135,700 for violating overseas data transfer rules

Korea's privacy watchdog said Thursday it has fined Bithumb, a major crypto exchange in the country, 210 million won ($135,700) for violating rules on the overseas transfer of users' personal information. The Personal Information Protection Commission decided to levy the penalty and order corrective measures against the company over the violations in a plenary session the previous day. The regulator said its investigation found Bithumb transferred the personal information of users overseas while sharing order books with a foreign exchange between September and November 2025. Although Bithumb notified users that their information would be sent to the Stellar exchange, it was actually transferred to bingx.com, a system operated by a different exchange. The watchdog additionally found that Bithumb failed to receive proper consent from users when sending their personal information to 13 foreign exchanges during asset transfers.

16h agoBy Yonhap

Privacy watchdog fines Bithumb $135,700 for violating overseas data transfer rules

Koreans lose interest in crypto trading

When bitcoin's price hit an all-time high of $126,210 last October, Lee Roo-da made up her mind. She would bet big when the next bear market came. That bear market has indeed arrived, but she remains hesitant. "Semiconductor stocks have been performing extremely well. Come to think of it, semiconductors are an industry with real earnings, whereas bitcoin isn't," the 33-year-old office worker told The Korea Times. "What if this is the end? Even if it isn't, how long will I have to wait for the price to go up?" Korea has long held a strong presence in the global crypto market, backed by enthusiastic retail investors, widespread internet access and a tech-savvy population. Many crypto projects refer to Korea as the "El Dorado of liquidity," as local investors have poured money into both bitcoin and altcoins. But recent data suggests that Korea's retail-driven crypto boom may be losing momentum amid a broader global slump, even as the country remains one of the world's most active retail markets. According to TRM Labs, a global blockchain intelligence firm, Korea ranked second in retail cryp

Jun 17, 2026By Lee Yeon-woo

EXPLAINER Institutions jockey for position in Korea's crypto market

Korea's crypto market was long defined by retail-led speculation. Now, the center of gravity is shifting to banks, brokerages and tech platforms as they race to secure an early foothold in the institutionalized market before the regulatory framework is finalized. According to Tiger Research, which tracked 196 partnerships across 150 institutions, the Korean market is seeing competition intensify on three key fronts: stablecoins, security token offerings (STOs) and custody. "The current race for partnerships is less about gaining a first mover advantage and more about shaping the regulatory landscape," said Kim Jeong-ho, a research analyst at Tiger Research. "Companies are trying to position themselves before the framework is finalized, so that the structures they establish now can influence future regulatory standards." Stablecoins: high on agenda, but stalled in National Assembly Stablecoins dominated last year's legislative agenda, but none of the related bills passed the National Assembly. Key issues remain unresolved, including issuer eligibility and a proposed 20 percent cap on majo

Jun 15, 2026By Lee Yeon-woo

[EXPLAINER] Institutions jockey for position in Korea's crypto market

Bithumb's bitcoin payout blunder results in $1.6 mil. compensation

Korea's major cryptocurrency exchanges have paid out billions of won in compensation for hacking incidents and system failures in recent years, data showed Sunday, with Bithumb reimbursing users about 2.5 billion won ($1.6 million) following the erroneous distribution of 620,000 bitcoins earlier this year. According to data submitted by the Financial Supervisory Service and major cryptocurrency exchanges to Rep. Lee Hun-seung of the main opposition People Power Party, one of the costliest incidents involved Bithumb, following an accidental bitcoin crediting incident in February. An employee mistakenly entered bitcoin instead of Korean won when processing rewards for a promotional event, resulting in the erroneous distribution of about 620,000 bitcoins to 249 users. The error triggered sharp price distortions, prompting Bithumb to compensate affected users. In a separate case, Upbit paid about 790 million won in compensation following a security breach in November 2025. Upbit said Solana-based assets worth about 44.5 billion won were transferred to unauthorized external wallets within 54

Jun 7, 2026By Lee Hyo-jin

Bithumb's bitcoin payout blunder results in $1.6 mil. compensation

Banks, fintech firms forge alliances for won-based stablecoins

Major financial institutions and fintech firms are exploring partnerships to gain an early foothold in the emerging stablecoin market ahead of the possible introduction of won-pegged stablecoins, according to industry officials Thursday. Earlier this week, officials from KB Financial Group, Shinhan Financial Group, BNK Financial Group, Industrial Bank of Korea, Toss and iM Bank held a closed-door meeting Monday to discuss developments in digital asset regulations and strategies for responding to the emerging stablecoin market. During the meeting, participants exchanged views on regulatory changes, the potential introduction of won-backed stablecoins and possible areas of cooperation. KB Financial is said to be considering entering the won-backed stablecoin market in partnership with fintech platform Toss. Under the arrangement being discussed, KB Kookmin Bank would issue the stablecoin while Toss would oversee distribution. Cryptocurrency exchange Bithumb, which currently maintains a bank account partnership with KB Kookmin Bank, is also viewed as a potential partner. In May, Hana Financi

Jun 5, 2026By Lee Hyo-jin

Banks, fintech firms forge alliances for won-based stablecoins

Brokerages rush into crypto exchange investments to secure future growth

Local securities firms are ramping up investments in cryptocurrency exchanges as they seek to secure a foothold in the country's emerging digital asset market ahead of the planned introduction of a tokenized securities framework, industry officials said Friday. Korea Investment & Securities announced that it has signed a strategic investment agreement with cryptocurrency exchange Coinone, acquring a roughly 20 percent stake in the platform. The deal will make the brokerage Coinone's third-largest shareholder, following CEO Cha Myung-hoon, who holds a 30.36 percent stake, and Com2uS Holdings with 24.54 percent. The securities firm said its investment in Coinone is intended not merely as an equity acquisition but as a foundation for expanding into new digital finance businesses. "With this partnership, we have taken our first step beyond the boundaries of conventional finance toward blockchain-based digital financial services," Korea Investment & Securities CEO Kim Sung-hwan said. "We seek to position ourselves as a leading player in the global digital asset market through innovative token

May 29, 2026By Lee Hyo-jin

Brokerages rush into crypto exchange investments to secure future growth

KOSPI hits fresh record above 8,000 on foreign buying, easing oil fears

The benchmark KOSPI hit another record Tuesday, closing above the 8,000-point milestone for the first time. The previous closing high stood at 7,981.41, set on May 14. After opening at 8,070.91, up 223.20 points, or 2.84 percent, from the previous session, the index maintained strong upward momentum and climbed to 8,131.15, surpassing the previous intraday high of 8,046.78 recorded on May 15. It eventually closed at 8,047.51, up 199.80 points, or 2.55 percent, from the previous session. Foreign investors began the session as net sellers but later shifted to net buying, marking their first net purchase in 13 trading sessions. Heavyweight shares led the rally, with Samsung Electronics advancing 2.22 percent, SK hynix surging 5.72 percent and Hyundai Motor gaining 5.19 percent. Investor sentiment improved on hopes for progress in ceasefire negotiations between the United States and Iran and expectations that the Strait of Hormuz would remain open. Reports suggested the two sides were nearing a memorandum of understanding that could pave the way for a final agreement. Easing geopolitical conce

May 26, 2026By Jun Ji-hye

KOSPI hits fresh record above 8,000 on foreign buying, easing oil fears

Planned crypto tax rollout faces growing investor backlash

A planned taxation on digital assets set to take effect next year is facing growing backlash from crypto investors, who warn the measure could weaken Korea's digital asset market. According to the National Assembly's online petition portal, a petition calling for the abolition of the planned crypto tax had gathered more than 45,000 signatures as of 3 p.m., Wednesday, within a week of being posted on May 13. If the number surpasses 50,000 by June 12, the proposal will be referred to a parliamentary committee for review. Under the current tax law, gains from the transfer or lending of virtual assets will become taxable starting Jan. 1, 2027. Profits exceeding 2.5 million won ($1,650) will be taxed at 22 percent, including local taxes, with the first filings scheduled for May 2028. The measures were originally set to take effect in January 2025, but was delayed by two years following a bipartisan agreement reached in December 2024. Korea is estimated to have around 13 million virtual asset investors, making the country one of the world's largest retail crypto markets. Critics argue the move t

May 21, 2026By Lee Hyo-jin

Planned crypto tax rollout faces growing investor backlash

Crypto industry squeezed by falling trading volume, tougher regulations

The domestic cryptocurrency industry is grappling with mounting concerns over a market downturn as trading activity sharply weakens amid the ongoing stock market boom and as financial authorities move to tighten regulations, industry officials said Sunday. According to data the Bank of Korea submitted to Rep. Cha Gyu-geun of the minor Rebuilding Korea Party, both domestic investors’ crypto holdings and transaction volumes have fallen by more than half over the past year. The value of digital assets held by investors at the country’s five cryptocurrency exchanges — Upbit, Bithumb, Korbit, Coinone and Gopax — fell to 60.6 trillion won ($41.4 billion) at the end of February from 121.8 trillion won recorded at the end of January last year. Average daily trading volume also fluctuated sharply during the period. After climbing to 17.1 trillion won in December last year, trading volume plunged to around 4.5 trillion won by the end of February this year. “The sharp drop in domestic cryptocurrency holdings appears to have been driven by both capital flowing into the strong local stock m

May 10, 2026By Jun Ji-hye

Crypto industry squeezed by falling trading volume, tougher regulations

KOSPI tops 6,750 intraday, ends 1.38% lower after 3-day streak on oil surge

The KOSPI briefly rose above the 6,750 mark to hit a new intraday high Thursday, but later gave up its gains to finish lower amid rising global oil prices. The benchmark index opened at 6,739.39, up 48.49 points, or 0.72 percent, from the previous close, and quickly climbed to 6,750.27, surpassing Tuesday’s intraday record of 6,712.73. It then turned downward in the afternoon and closed at 6,598.87, down 92.03 points, or 1.38 percent. The index’s strong start was fueled by better-than-expected first-quarter results from four major Big Tech companies. However, the rally lost momentum as global oil prices climbed after the U.S. reaffirmed its maritime blockade against Iran. West Texas Intermediate crude futures hovered around $109 per barrel in after-hours trading. Investor sentiment was further weighed down by a hawkish readout of the Federal Open Market Committee (FOMC) meeting. Despite the late-session decline, KOSPI has maintained an upward trend in recent days, driven by strength in semiconductor shares. A day earlier, the benchmark had finished at a record 6,690.90, up 49.88 point

Apr 30, 2026By Jun Ji-hye

Cryptocurrency