South Korea’s crypto volumes spike as Woori eyes over $300 million Upbit exit

with insights from Kaiko

As South Korean politics heat up, Woori's strategic Dunamu sale could reshape the crypto landscape.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Woori Technology, a South Korean venture capital firm, is reportedly considering selling its stake in Dunamu, the parent company of the Upbit crypto exchange.

Upbit is the largest crypto trading platform in the East Asian country.

According to local media reports, Woori invested 5.5 billion KRW in Dunamu in 2015, acquiring an undisclosed company share. Nearly nine years later, the firm holds a 7.22% stake, which reportedly has a current over-the-counter (OTC) value of around 425.3 billion KRW, or $300.7 million.

While the exact sale price remains unclear, reports suggest that it could exceed the current OTC market value, with a return potentially surpassing 100 times the original investment.

Speculation indicates that Woori is seeking international buyers after struggling to raise funds from domestic investors. The transaction will likely occur through a block deal, allowing large shareholders to transfer stocks after hours and preventing market manipulation.

Meanwhile, this deal comes at an interesting time when South Korean authorities investigate the crypto trading platform for multiple issues, including potential Know-Your-Customer (KYC) violations and concerns over its local market dominance.

Ripping volume

Woori’s potential sale comes as South Korea’s crypto market is experiencing a surge in trading volumes, coinciding with political unrest in the country.

On Dec. 3, President Yoon Suk Yeol declared an emergency martial law but reversed his decision six hours later.

This declaration significantly impacted the local crypto market, with blockchain analytical platform Kaiko pointing out that the president’s move resulted in 18 billion KRW worth of selling on Bitcoin in the first thirty minutes. It added:

“While the selling pressure abated for $BTC it remained for other assets, most notably there was significant $XRP selling throughout the day on Bithumb.”

Unsurprisingly, the vast selling activity translated into heavy trading activities on local platforms in the country. Onchain data shows that Upbit saw a 44.7% rise in trading volume, reaching nearly $28 billion in the past 24 hours. Other exchanges, including Bithumb, Coinone, Korbit, and Gopax, also reported substantial upticks in trading activity.

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