Employees at South Korean cryptocurrency exchanges are earning more than those at big banks. In the first quarter of 2024, Dunamu, the company behind the Upbit cryptocurrency exchange, saw consolidated sales increase by 60.5% to $400 million.
Despite the higher salaries in the cryptocurrency sector, the industry’s volatility and uncertainty pose greater risks compared to stable careers in traditional banking. A short-term boost in Dunamu’s sales does not necessarily ensure long-term financial stability.
According to data from the Financial Supervisory Service (FSS), the average salary for Dunamu’s executives and staff in the first half of 2024 was 133.73 million South Korean won (about $99,500). This is higher than the average salary of employees at four major South Korean banks, including Woori Bank, KB Kookmin Bank, Shinhan Bank, and Hana Bank, where the average pay was 116 million won (around $86,700).
Dunamu’s significant salary increase, with a 124% rise from an average income of 59.44 million won ($44,100) in the first half of 2023, can be attributed to the market’s strong performance in early 2024. The approval of the first spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission on January 10 spurred interest in digital assets, significantly boosting Dunamu’s operating income.
During this period, Bitcoin’s price soared, with the Upbit exchange showing BTC’s price at 96,734,000 South Korean won (roughly $72,504) on March 5, driven by large inflows to US-based spot Bitcoin ETFs. This price, higher than the global average, reflects the “Kimchi Premium,” a price difference caused by South Korea’s strict capital controls, which restrict the movement of funds in and out of the country. Despite government efforts to regulate cryptocurrency trading, the Kimchi Premium persists, underscoring the strong demand for Bitcoin in South Korea.
