[Digital Today reporter Sangyeop Oh (오상엽)] As South Korea's digital asset trading market contracts, first-half results at leading exchanges Upbit and Bithumb also fell sharply. Dunamu, which operates Upbit, posted an operating profit down about 80 percent from a year earlier, and Bithumb's fell more than 80 percent. Bithumb posted a net loss as digital asset valuation losses added to the hit.

Combining the two firms' first-half results, Dunamu and Bithumb recorded total revenue of 576.9 billion won and operating profit of 126.4 billion won.

Dunamu's consolidated operating revenue for the first half of this year was 408.1 billion won, down 49.1 percent from 801.9 billion won a year earlier.

Operating profit fell 79.7 percent to 111.5 billion won from 549.1 billion won a year earlier. Net profit also dropped 74.1 percent to 108.4 billion won from 418.2 billion won.

Bithumb's decline was larger. Its first-half revenue was 168.8 billion won, down 48.7 percent from 329.2 billion won a year earlier.

Operating profit for the period fell 83.4 percent to 14.9 billion won from 90.1 billion won. Net profit and loss swung to a net loss of 108.7 billion won from a net profit of 55.0 billion won a year earlier. The company cited the impact of factors including digital asset valuation losses.

Bithumb's slowdown continued even in the second quarter alone. Second-quarter revenue fell 35.8 percent from a year earlier to 86.3 billion won, and operating profit dropped 44.0 percent to 12.1 billion won. Net profit and loss turned to a net loss of 21.8 billion won from a net profit of 22.0 billion won.

Both companies cited declining liquidity and trading in the digital asset market as the main factors behind weaker results. Dunamu explained that weakened investor sentiment stemming from a reduction in liquidity across the global digital asset market had an impact.

Bithumb analysed that digital asset trading value fell as the United States maintained a hawkish interest rate stance and investor attention at home and abroad shifted to the stock market, including artificial intelligence and semiconductors.

For domestic exchanges that rely heavily on trading fees, the structure in which a decline in trading value translates directly into pressure on results has again been confirmed. In particular, as trading in the domestic stock market has recently become more active, the flow of retail investors' funds into equities is also cited as a factor for exchanges' second-half results.

Exchanges are therefore also moving to expand business beyond existing retail spot trading.

Bithumb plans to strengthen AI-based trading convenience and investment information services, while preparing to attract corporate members in anticipation of the opening of the corporate market. It will also overhaul its regulatory compliance framework in line with the Digital Asset Basic Act being 추진 within this year and expand security investment, including adopting post-quantum cryptography (PQC).

Dunamu is also continuing to overhaul internal systems to strengthen user protection and market soundness. Recently it has been expanding into business areas related to digital asset custody and security infrastructure, including winning the National Police Agency's project for the custody and management of seized virtual assets.

The industry sees whether trading value recovers in the second half as likely to determine the two exchanges' performance. With the opening of the corporate market delayed and a retail-led market structure continuing, how quickly they can secure new revenue sources beyond trading fees is also expected to be a factor differentiating future results.