Kbank extends real-name account partnership with Upbit operator Dunamu by one year
In short
Kbank said it agreed with Dunamu, the operator of crypto exchange Upbit, to extend their real-name deposit and withdrawal account partnership by one year, to 5 October next year. Bloter reported the new term runs from 6 October and renews automatically each year unless either side gives notice. Upbit-linked digital asset deposits stood at 3.735 trillion won at the end of the first half, 14.0% of Kbank's total deposits of 26.6 trillion won.
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Kbank said it has agreed with Dunamu, the operator of crypto exchange Upbit, to extend their real-name confirmation deposit and withdrawal account partnership by one year. Chosun Ilbo reported that Kbank disclosed the renewal on 2 October and that the contract, which was due to expire that day, now runs to 5 October next year. Kbank said it “agreed with Dunamu to extend the existing partnership contract”. [ 1 ]
Bloter reported the new contract term runs from 6 October to 5 October next year and extends automatically for one year at a time unless either party states an intention to end it. Kbank provides real-name confirmation deposit and withdrawal account services for won trading on Upbit and continues to handle the depositing, safekeeping and management of crypto user deposits, the outlet reported. [ 4 ]
Bloter put the Upbit-linked digital asset deposits at 3.735 trillion won at the end of the first half, 14.0% of Kbank's 26.6 trillion won in total deposits. That share was down 10.6 percentage points from 24.6% in the third quarter of last year, while deposits excluding digital assets were maintained at about 22.9 trillion won, it said. Kbank's customers reached 16.45 million at the end of the first half, up 2.32 million from a year earlier, and loans rose 13.9% on the year to 19.8 trillion won, with individual business loans more than doubling to 3.3 trillion won. Upbit real-name account holders number 7,014,677, Bloter reported. [ 4 ]
The renewal had been preceded by market speculation that Upbit's partner bank could change, after Hana Bank invested 1.0033 trillion won for a 6.55% stake in Dunamu and Hana Financial and Dunamu expanded cooperation on blockchain-based financial services. Bloter reported that the Kbank–Upbit alliance, which began in 2020, is now in its seventh year. Kbank's corporate group head Kim Min-chan said at the company's first-half earnings conference call that the two sides had maintained a good relationship since the 2020 real-name account partnership and that renewal procedures were proceeding normally, according to Bloter. Kim also said Kbank is in talks with Dunamu about corporate crypto trading, for which guidelines were expected in the second half, and would continue to expand the business. [ 4 ]
Bloter reported that the Upbit partnership is not a one-sided gain for Kbank's profitability: the interest rate Kbank applies to Upbit customer deposits rose from 0.1% to 2.1% a year from 19 July 2024 under the Virtual Asset User Protection Act, increasing interest costs. Korea Economic Daily, reporting the extension in a separate article, said the shortened renewal cycle means competition among banks to win crypto exchange partnerships is expected to continue. [ 2 , 4 ]
Why it matters
The extension keeps Kbank as the real-name account partner of South Korea's largest crypto exchange, preserving a customer touchpoint of about seven million account holders and a 3.735 trillion won deposit business. It also removes, for now, the uncertainty over whether the partnership would move to Hana Bank after Hana bought a stake in Dunamu. Korea Economic Daily said the shorter renewal cycle means banks may continue competing for exchange partnerships.
Key facts
- Chosun Ilbo reported that Kbank disclosed the extension of its real-name confirmation deposit and withdrawal account partnership with Dunamu on 2 October. [ 1 ]
- The contract that was due to expire on 5 October now runs to 5 October next year, according to Chosun Ilbo and Bloter. [ 1 , 4 ]
- Bloter reported the new term began on 6 October and extends automatically by one year unless either party gives notice of termination. [ 4 ]
- Kbank manages Upbit customer deposits: 3.735 trillion won at the end of the first half, 14.0% of its 26.6 trillion won in deposits, down from 24.6% in the third quarter of last year, Bloter reported. [ 4 ]
- Upbit real-name account holders number 7,014,677, Bloter reported. [ 4 ]
- Kbank's interest rate on Upbit customer deposits rose from 0.1% to 2.1% a year from 19 July 2024 under the Virtual Asset User Protection Act, increasing its interest costs, according to Bloter. [ 4 ]
- Hana Bank acquired a 6.55% stake in Dunamu for 1.0033 trillion won, which Bloter said prompted speculation that Upbit's partner bank could change. [ 4 ]
- Korea Economic Daily reported the renewal cycle was shortened and that competition among banks for crypto exchange partnerships is expected to continue. [ 2 ]
Confirmed by several sources
Still unclear
- Whether the new contract term starts on 5 or 6 October. Chosun Ilbo said the contract expiring on 5 October was extended to 5 October next year, while Bloter said the new term runs from 6 October to 5 October next year.
- Whether Upbit's real-name partner bank could still switch to Hana Bank. Bloter reported the speculation followed Hana Bank's stake purchase in Dunamu but reported no decision, and no other document addresses it.
- What the shortened renewal cycle reported by Korea Economic Daily means in practice. Korea Economic Daily referred to a shortened renewal cycle without details, while Bloter described a one-year term that renews automatically unless either party gives notice.
What local media are saying
Timeline, local time
- Chosun Ilbo reports Kbank has extended the Upbit real-name account partnership for one year, to 5 October next year. [ 1 ]
- Korea Economic Daily reports the extension and says the shortened renewal cycle means banks will likely keep competing for exchange partnerships. [ 2 ]
- Korea Economic Daily publishes a second report on the one-year extension. [ 3 ]
- On 6 October, Bloter reports the new contract term runs from 6 October to 5 October next year and renews automatically each year. [ 4 ]