South Korean brokerage Kiwoom Securities is currently in negotiations to acquire a stake in Bithumb, the country’s second-largest cryptocurrency exchange. The deal is structured as a third-party allotment of new shares, which would require Bithumb to issue fresh equity directly to the traditional finance giant. Bithumb officials confirm they are exploring financial partnerships, though no specific investment scale is finalized.
This negotiation is a direct result of impending government intervention. South Korea’s Financial Services Commission (FSC) is drafting a second-phase virtual asset law that will institutionalize security token offerings (STOs). Under this framework, the FSC will cap a single major shareholder’s equity in a crypto exchange at 20%, granting a maximum of 34% only under special exceptions. This forces an immediate structural reorganization for independent digital asset platforms.
Key Details
- Kiwoom Securities is negotiating a direct issuance of new shares rather than buying existing stock on the open market.
- The impending FSC mandate strictly caps single-shareholder ownership in digital asset exchanges at 20%.
- Bithumb is actively preparing its corporate structure for a targeted initial public offering in 2028.
The regulatory ceiling creates an urgent math problem for the exchange. Bithumb Holdings currently controls 73.56% of the company, according to a report by Chosun Biz. To comply with the incoming FSC regulations, the parent company must dilute its ownership by more than 50 percentage points. Securing an institutional cash injection from Kiwoom solves this compliance requirement while raising capital.
Kiwoom’s pursuit mirrors an aggressive strategy across South Korea’s retail brokerage sector to secure crypto infrastructure. Over recent months, Korea Investment & Securities purchased a 19.6% stake in Coinone for $106 million. Samsung subsidiaries bought a 4% stake in Upbit operator Dunamu for $408 million, and Hana Financial Group acquired 6.55% of Dunamu for roughly $670 million. Mirae Asset also secured a 92% majority stake in Korbit.
How the 20% Equity Cap Reshapes the 2028 IPO Pipeline
The FSC ownership limits are fundamentally altering the balance of power in South Korean crypto. By forcing majority shareholders to dilute to 20%, the government is effectively stripping unilateral control from early crypto founders. Traditional finance firms like Kiwoom Securities are stepping in to absorb this forced sell-off, transferring board power from crypto natives to established corporate brokerages.
This equity shift is a strategic necessity for Bithumb’s broader financial timeline. The exchange is targeting a 2028 IPO, and the FSC’s capital markets framework for security tokens is set for full implementation in February 2027. Bringing a heavily regulated entity like Kiwoom onto the cap table validates Bithumb’s corporate governance ahead of its public offering, ensuring the platform operates as an extension of the established financial sector rather than an independent outlier.