1. Average Salaries at Upbit and Banks
2. Impact of Digital Asset Market
3. Upbit CEO's Earnings and Kimchi Premium

Employees of the prominent crypto exchange Upbit in South Korea are earning more than their counterparts at the country's leading banks due to the booming cryptocurrency market.

Average Salaries at Upbit and Banks

Recent data from the Financial Supervisory Service (FSS) shows that the average salary at Upbit’s operator, Dunamu, surged to 133.73 million South Korean won (approximately $99,500) in the first half of 2024. This figure surpasses the average salary of employees at South Korea’s top banks, such as KB Kookmin Bank, Shinhan Bank, Hana Bank, and Woori Bank, which is around 116 million won ($86,700).

Impact of Digital Asset Market

At the beginning of 2024, the approval of Bitcoin Spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission ignited a bullish trend in digital assets. This surge in interest, especially in South Korea, boosted Upbit’s profitability, leading to an impressive 60.5% increase in consolidated sales, reaching 531.1 billion won (nearly $400 million) in the first quarter of 2024. The rise in employee compensation is largely dependent on bonuses linked to the market boom. The average salary of Upbit employees doubled from 59.44 million won last year, indicating a 124% year-on-year increase.

Upbit CEO's Earnings and Kimchi Premium

Song Chi-Hyung, CEO of Dunamu, announced that he saw substantial gains, with earnings surpassing $3.5 million in H1 2024, indicating more than double the compensation of CEOs at major banks. Upbit’s trading volume spiked in March, reaching $15 billion as BTC’s price surged to $69,000. South Korean traders are driven by the 'Kimchi Premium,' which refers to the price gap between cryptocurrencies listed in South Korea and those on U.S. or EU exchanges. This trend pushed Bitcoin prices even higher, enhancing the exchange’s performance. The success of Upbit is mirrored by other exchanges like Bithumb, which reported a 639.2% spike in operating profits for the second quarter of FY2023. As South Korean crypto markets thrive through financial rewards, this sector will continue to outpace traditional banking roles.

In the context of the rapid growth of the digital assets market, employees of cryptocurrency exchanges like Upbit receive significant financial advantages compared to workers in traditional banks.