Dunamu, the parent company of South Korea’s largest cryptocurrency exchange Upbit, announced a three-fold increase in dividends for its shareholders after a significant profit surge in 2024.
Dividend and Profit Increase
At its annual shareholders' meeting today, Dunamu approved a dividend of 8,777 Korean won ($5.99) per common share, substantially up from 2,937 won ($2) per share a year earlier. According to the company's official statement, the total cash dividend distribution amounts to about 300 billion won ($204.5 million). The company reported that its operating profit in 2024 is expected to increase by 85.1% from the previous year to 1.18 trillion won ($809 million). Net profit also increased by 22.2% to 983.8 billion won ($671 million).
Profit Growth Factors
The company said the increase in sales and operating profit appeared to be driven by factors such as the Bitcoin halving and positive investment sentiment. Dunamu also attributed its strong performance to the expansion of global liquidity, supported by US President Donald Trump’s pro-crypto stance and expectations of a US interest rate cut.
Regulatory Challenges for Upbit
Despite being limited to South Korean investors, Upbit remains the dominant crypto exchange in the country with a monthly trading volume of $101 billion as of February. However, Upbit has recently faced increased regulatory scrutiny from South Korea's Financial Intelligence Unit (FIU), which expressed concerns over alleged transactions with unregistered foreign exchanges and potential know-your-customer (KYC) violations. The FIU initially sought to restrict new users from depositing and withdrawing external cryptocurrencies on Upbit for three months, but a Seoul court temporarily blocked the penalty by granting Dunamu an injunction for 30 days.
As Dunamu continues its rapid growth, industry watchers will be monitoring both its financial performance and regulatory challenges in the evolving South Korean crypto landscape.
