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South Korean Crypto Boom Pushes Upbit Salaries Beyond Major Banks

Key Insights:

  • Upbit employees saw a 2.2-fold salary increase in 2024, with average pay exceeding that of South Korea’s top commercial banks.
  • Crypto market growth, spurred by Bitcoin ETFs, boosted Upbit’s profitability, leading to substantial performance bonuses for employees.
  • Dunamu CEO’s $3.5 million earnings surpass traditional bank CEOs, reflecting the growing financial clout of South Korean crypto exchanges.

New data reveals that, following a rise in crypto market activity, employees of South Korean crypto exchanges are earning more than staff at some of the country’s leading commercial banks. 

According to the Financial Supervisory Service (FSS), compensation for employees at the Upbit exchange has increased substantially, with some workers earning more than their counterparts at major financial institutions.

The surge in employee earnings is linked to an uptick in trading volumes, as crypto markets experienced a notable rebound. Industry observers attribute the rise in trading to the launch of Bitcoin spot exchange-traded funds (ETFs) in the United States, which fueled a bull market and boosted revenues for domestic exchanges.

Crypto Exchange Upbit Sees Staff Compensation Soar

Data from South Korea’s Financial Supervisory Service revealed a sharp rise in employee salaries at the Upbit exchange, one of the country’s leading crypto platforms. The report shows that in the first half of 2024, the average salary at Dunamu, Upbit’s operator, reached over $99,000 per employee, more than doubling from approximately $44,000 during the same period last year, according to News 1.

This substantial increase in compensation can be attributed to performance-based bonuses, reflecting the growth of the crypto market during the first half of the financial year. Dunamu reportedly paid out over $2.4 million in bonuses to its CEO, further indicating the firm’s strong financial performance.

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Crypto Boom Drives Profitability and Investor Activity

The rise in compensation is closely linked to a broader resurgence in the crypto market, fueled in part by the introduction of Bitcoin spot ETFs in the United States. The resulting bullish trends encouraged a surge in retail trading on South Korea’s domestic platforms, with Upbit seeing a significant boost in trading volumes.

South Korean crypto markets are heavily populated by retail investors, commonly referred to as “ants,” who tend to be more active during periods of volatility in token prices. The return of these investors to the market contributed to the platform’s growing profitability. 

During the first quarter of 2024, Dunamu reported an operating income of $393.4 million, representing a 60.5% increase from the fourth quarter of the previous year.

The positive financial results have led to generous performance bonuses for Upbit employees. The exchange also posted a nearly 40% increase in operating profit compared to the previous quarter. This rise in compensation stands in stark contrast to the salaries at traditional financial institutions, where employee pay has remained relatively stagnant.

Crypto Exchange Executives Earn More than Traditional Financial CEOs

The increase in earnings was not limited to entry-level employees. Executives at Dunamu, particularly the CEO, also benefitted significantly from the firm’s strong financial performance. The company paid its CEO Song Chi-hyung over $3.5 million in the first half of 2024, which is more than double the compensation of top executives at major financial institutions. For example, Citibank Korea’s CEO earned $1.54 million during the same period, while Hana Financial Group’s Chairman, Ham Young-joo, received $1.35 million.

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The growing profitability of cryptocurrency exchanges like Upbit has allowed them to offer compensation packages that exceed those in traditional banking. These developments are seen as evidence of the changing dynamics in the financial sector, where crypto platforms are beginning to outperform established banking institutions in terms of employee compensation.

Bithumb Reports Similar Financial Success

Upbit is not the only exchange experiencing a surge in profitability. Bithumb, another major cryptocurrency platform in South Korea, also reported strong financial results for the second quarter of 2023. The exchange posted a 639.2% increase in operating profits compared to the same quarter in 2022, while its sales rose by 193.6%, reaching $180 million.

This rapid growth in earnings underscores the growing influence of the cryptocurrency sector in South Korea, particularly as retail investors remain heavily engaged in trading activities during periods of market volatility.


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Curtis Dye

Curtis is a cryptocurrency news and analytics author with a focus on DeFi, BLockchain, CeFi, NFTs etc. He has publication skills such as SEO optimization, Wordpress, Surfer tools and aids his viewers with insights on the volatile crypto industry.

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