Major South Korean crypto exchanges Upbit and Bithumb have published financial reports for the first half of 2026. Both companies recorded a significant drop in revenue – by approximately fifty percent – amid a general cooling of the market, reduced investor activity, and lower trading volumes, which directly affected their commission income. The revenue of Upbit’s parent company, Dunamu, decreased by forty‑nine and one‑tenth percent year‑on‑year to 408.1 billion won, or about 288.9 million dollars. Bithumb’s revenue fell by forty‑eight and seven‑tenths percent to 168.8 billion won, or 119.5 million dollars.

Despite similar revenue dynamics, the companies’ financial results turned out to be different. Dunamu maintained an operating profit of 111.5 billion won and a net profit of 108.4 billion won, although its operating margin decreased from 68% to 27%. Bithumb also remained profitable at the operational level, earning 14.9 billion won thanks to active cost reduction, including a 70% cut in advertising and sales promotion expenses. However, below the level of operating profit, Bithumb recorded a net loss of 108.7 billion won. This is due to significant non‑operating expenses amounting to 155.1 billion won, including losses from the disposal and revaluation of digital assets amounting to 73.4 billion won, as well as expected costs for regulatory proceedings. For comparison, in the first half of last year, Bithumb reported a net profit of 55 billion won.

The reporting of both exchanges revealed their common structural problem – a critically high dependence on trading commissions. Dunamu’s revenue from the trading platform amounted to approximately 395.5 billion won, or about 97 percent of total revenue, while Bithumb’s commission earnings of 168.7 billion won accounted for almost the entire revenue stream. Customer funds on both platforms decreased by approximately 35 percent. This trend is typical of the entire cryptocurrency sector in South Korea: according to Bitwatch, the total trading volume on five fully licensed domestic exchanges in the second quarter fell by 49.5 percent and amounted to 146.43 billion dollars. In addition to financial difficulties, companies have also faced other problems: an investigation is underway against the CEO of Bithumb, and Upbit experienced a hacker attack in November 2025.

***

The material was prepared solely for informational and educational purposes and does not constitute financial advice or a recommendation.