Woori Technology, a prominent South Korean venture capital firm, is reportedly contemplating the sale of its stake in Dunamu, the parent company of the popular Upbit crypto exchange. Upbit stands as the largest cryptocurrency trading platform in South Korea, making this potential sale a significant move in the country’s crypto industry.
Reports from local media sources suggest that Woori initially invested 5.5 billion KRW in Dunamu back in 2015, acquiring an undisclosed percentage of the company. Fast forward almost nine years later, Woori now holds a 7.22% stake in Dunamu, with an estimated over-the-counter (OTC) value of approximately 425.3 billion KRW, equivalent to around $300.7 million. The sale price for this stake remains undisclosed, but speculations hint that it could potentially exceed the current OTC market value, delivering a return that surpasses 100 times the initial investment.
Sources indicate that Woori is exploring international buyers for this stake sale, as it has faced challenges in raising funds from domestic investors. The transaction is likely to take place through a block deal, enabling large shareholders to transfer stocks after trading hours to prevent any market manipulation.
Interestingly, this sale is happening amidst ongoing investigations by South Korean authorities into Upbit for various issues, including potential Know-Your-Customer (KYC) violations and concerns surrounding its dominant position in the local market.
The timing of Woori’s potential sale coincides with a surge in trading volumes in South Korea’s crypto market, driven by recent political turmoil in the country. President Yoon Suk Yeol’s declaration of emergency martial law on December 3 caused significant disruptions, leading to a notable impact on the crypto market. Blockchain analytics platform Kaiko highlighted that the president’s decision triggered a selling spree of 18 billion KRW in Bitcoin within the first thirty minutes. This selling pressure extended to other assets, particularly XRP, on platforms like Bithumb.
As a result of this political uncertainty, trading activities on local exchanges spiked significantly. Upbit alone witnessed a 44.7% increase in trading volume, reaching nearly $28 billion in trading volume over the past 24 hours. Other exchanges such as Bithumb, Coinone, Korbit, and Gopax also reported substantial upticks in trading activities.
In conclusion, Woori’s potential stake sale in Dunamu and the heightened trading volumes in South Korea’s crypto market amidst political unrest underscore the dynamic nature of the industry. It will be interesting to see how this sale unfolds and its impact on the broader crypto ecosystem in the country.