South Korean digital asset exchanges are stepping up restructuring as they face falling trading values and worsening profitability. They are expanding cooperation with the traditional financial sector and moving quickly to enter overseas markets. They are also actively seeking new growth engines by building Web3 infrastructure.

According to the digital asset industry on Tuesday, trading at the five biggest won-market exchanges - Upbit, Bithumb, Coinone, Korbit and Gopax - totalled $27.8 billion from May 1 to 17. Domestic digital asset trading has been on a downward trend, from $75.0 billion in January and $85.3 billion in February to $58.3 billion in March and $53.0 billion in April.

The contraction in trading fed into results. Dunamu, which operates Upbit, posted first-quarter consolidated revenue of 234.6 billion won and operating profit of 88.0 billion won. That was down 54.6 percent and 77.8 percent, respectively, from a year earlier.

Bithumb also recorded revenue of 82.5 billion won and operating profit of 2.9 billion won in the period, down 57.6 percent and 95.8 percent, respectively. As of last year, trading fees accounted for 98.26 percent of Dunamu revenue and 97.69 percent of Bithumb revenue.

The industry views the weak performance as a structural problem rather than a simple market slowdown. Because most exchange revenue comes from trading fees, profitability is immediately shaken when volumes fall. The cooler the market, the greater the swing in results.

Exchanges are moving to cooperate and invest to reduce dependence on fees. Hana Financial Group decided, through Hana Bank, to acquire a 6.55 percent stake in Dunamu held by Kakao Investment for about 1.0033 trillion won. Once the deal is completed, Hana Bank will become Dunamu's fourth-largest shareholder. The planned acquisition date is June 15.

Dunamu is also preparing Web3 infrastructure and a business based on real-world assets. A Dunamu official said, "We are preparing to diversify businesses and services while complying with regulations." The official added, "We will also try to strengthen security and artificial intelligence (AI) within services and continue to invest actively."

The official also said, "We are experimenting with the tokenisation of real-world assets (RWA) through Vybe, a luxury watch trading platform." The official explained, "Vybe is not a simple commerce business but a test bed for a real-world asset securitisation strategy."

Dunamu's Web3 infrastructure brand, 'GIWA', which it has unveiled, is also cited as a pillar of business diversification. Dunamu unveiled GIWA at the Upbit D Conference (UDC) in September 2025 and it is currently in the testnet stage.

GIWA consists of 'Giwa Chain', an Ethereum-based layer 2 blockchain, and 'Giwa Wallet', an integrated wallet service. Giwa Chain is based on optimistic rollups and aims for fast processing speeds and low fees.

Dunamu is also broadening contacts with global stablecoin companies. Dunamu signed a comprehensive memorandum of understanding (MOU) in April with USDC issuer Circle for domestic digital asset innovation and education.

Bithumb is also seeking a breakthrough in overseas markets. Bithumb signed a comprehensive MOU with SSID, a subsidiary of Vietnam's SSI Securities, for a local digital asset exchange business.

The agreement focuses on cooperation in developing and operating financial services related to a Vietnam-based exchange business. The two sides plan to cooperate across the establishment and operation of an exchange, including technical architecture, wallet and custody systems, security and risk management, regulatory support and institutional business.

They also left open the possibility of Bithumb making a strategic equity investment in an SSID-designated corporation, subject to regulatory approval by Vietnamese authorities.

Bithumb is also expanding cooperation on stablecoins and digital asset infrastructure, like Dunamu. Last month it signed an MOU with USDC issuer Circle and agreed to jointly review technical integration, including multi-chain functions within the Bithumb platform, and measures to support stablecoin infrastructure.

The two sides also plan to pursue joint initiatives to deepen understanding of stablecoins and the digital asset ecosystem.

A Bithumb official said, "On the business side, we plan to review collaborations with various companies and, as we move away from the existing trading fee-centred structure, to pursue an expansion of new revenue models in parallel."

Regulatory variables remain a burden. As discussions on the Digital Asset Framework Act have been delayed, uncertainty over exchanges' business expansion is also growing.

The Digital Asset Framework Act, second-stage legislation covering stablecoins and the issuance and distribution of digital assets, disclosure and listings, was dropped from the agenda of a National Assembly Political Affairs Committee bill subcommittee on May 12. That lowered the chances of passage in the first half, and there is talk that full-scale discussions could be pushed back until after September.

Digital asset taxation is also set to apply to capital gains and lending income from Jan. 1, 2027. With no additional postponement confirmed, exchanges must also prepare for the possibility of investor departures and falling trading values.

Amendments to the Act on Reporting and Using Specified Financial Transaction Information are also a burden. The revised act is set to take effect on Aug. 20, and the industry's regulatory response burden is growing as discussions cover tighter entry regulations, expanded anti-money laundering obligations and clearer customer identification standards, as well as an expanded travel rule and tougher regulation of transactions with overseas operators and personal wallets.

An industry official said, "We are shifting away from a trading fee-centred business and transitioning to a structure that combines finance, technology and overseas businesses while complying with regulations." The official added, "Institutional variables such as taxation and the revised act are a burden, but at the same time they could become an opportunity for exchanges to change beyond simple trading platforms into digital financial infrastructure companies."