Upbit Operator Dunamu Triples Dividends Following Profit Surge
Dunamu, the parent company of South Korea’s largest cryptocurrency exchange Upbit, has announced a threefold increase in cash dividends to common shareholders following a sharp rise in annual profits.
During its annual shareholder meeting on Friday, the company approved a dividend of 8,777 Korean won ($5.99) per common share for 2024, up from 2,937 won ($2) in the previous year.
According to Dunamu’s official disclosure, the company has allocated nearly 300 billion won ($204.5 million) for cash dividends under its retained earnings distribution plan.
Dunamu Sees Operating Profit Soar 85% Amid Crypto Market Tailwinds
Dunamu reported an 85.1% year-over-year increase in operating profit, totaling 1.18 trillion won ($809 million), while net profit rose 22.2% to 983.8 billion won ($671 million).
In its press release, Dunamu attributed the strong performance to increased investor interest driven by macroeconomic trends, including optimism surrounding U.S. interest rate cuts and the pro-crypto stance of President Donald Trump following his election.
The Bitcoin halving event was also cited as a key contributing factor. Upbit, although limited to South Korean users, continues to exert global influence.
In February, it processed $101 billion in monthly trading volume, reaffirming its role as a major centralized exchange.
However, the platform has recently faced regulatory scrutiny. South Korea’s Financial Intelligence Unit (FIU) raised concerns over Upbit’s alleged dealings with unregistered foreign exchanges and potential KYC violations.
The FIU attempted to impose a three-month restriction on crypto withdrawals and deposits for new users. In response, Dunamu filed for an injunction, and a Seoul court granted a temporary suspension of the FIU’s order for 30 days, according to local media reports.
The legal process is ongoing as the company seeks to maintain its growing momentum amid tighter oversight.
In a separate case, the FIU flagged Upbit for possible Know Your Customer (KYC) failures, identifying as many as 600,000 potential KYC violations in a review tied to the platform’s business license renewal.
South Korean law mandates that crypto exchanges comply with strict KYC rules following the ban on anonymous trading introduced in 2018.
The FIU also accused Upbit of conducting over 45,000 transactions with unregistered foreign exchanges, a violation of the Act on Reporting and Using Specified Financial Transaction Information.
Korean Prosecutors Raid Bithumb
Last week, South Korean prosecutors launched a formal investigation into Bithumb, one of the country’s largest cryptocurrency exchanges, over allegations that company funds were misused to facilitate an apartment purchase for its former CEO.
The Seoul Southern District Prosecutors’ Office also executed a search and seizure operation at Bithumb’s headquarters in Yeoksam-dong.
Authorities suspect that Bithumb provided a 3 billion Korean won (approximately $2.4 million) lease deposit for an apartment in Seongsu-dong to its former CEO and current advisor, Kim Dae-sik.
Last year, South Korea’s cryptocurrency investors crossed 15 million. According to figures submitted by the Bank of Korea, 15.59 million South Koreans held accounts on the nation’s top five cryptocurrency exchanges by the end of November.
Deposits in crypto exchanges also doubled, rising from 4.7 trillion won ($3.2 billion) in October to 8.8 trillion won ($6.03 billion) in November.