Mirae Asset Group, a prominent financial institution, is reportedly in discussions to acquire Korbit, South Korea”s fourth-largest cryptocurrency exchange, in a deal estimated to be valued at approximately $100 million. This strategic move aims to facilitate a fully licensed entry into the South Korean crypto market, which has stringent regulatory frameworks governing virtual asset operations.
The acquisition negotiations are being spearheaded by a non-financial affiliate of Mirae Asset, specifically Mirae Asset Consulting. This approach is intended to effectively navigate the strict domestic regulations that separate traditional banking entities from virtual asset businesses. The financial giant”s pursuit of Korbit comes on the heels of a significant $10 billion merger between Naver Financial and Dunamu, which operates Upbit, reflecting a trend where major traditional firms consolidate their influence in the sector ahead of anticipated institutional regulatory easing.
According to reports, the potential acquisition could range between 100 billion to 140 billion won, translating to around $70 million to $100 million. The Chosun Daily highlighted that Korbit is currently approximately 60.5% controlled by NXC, the holding company for the gaming giant Nexon, while SK Square holds around 31.5% after investing 90 billion won in 2021.
It is crucial to recognize the challenging regulatory landscape in South Korea, where the Financial Services Commission has instituted strict licensing and banking requirements. As a result, there are only a limited number of fully licensed cryptocurrency exchanges in operation. Acquiring an existing exchange like Korbit may present a more viable path than attempting to secure a new license.
Korbit, established in 2013 and headquartered in Seoul, has been a key player in the South Korean crypto landscape, providing KRW on/off ramps along with various spot trading pairs. However, its market share has dwindled to below 1% of the domestic trading volume, as noted by CoinGecko. The ongoing discussions regarding Mirae Asset”s acquisition of Korbit follow a broader trend of consolidation in the sector, with traditional finance groups actively seeking to establish a presence within licensed crypto infrastructure.
As the cryptocurrency market evolves, the implications of this potential acquisition could significantly reshape the landscape for both institutional investors and retail traders in South Korea.
