Salaries at South Korean crypto exchanges have more than doubled in the past year, with workers at Upbit, one of the nation’s top exchanges, receiving higher pay than staff at major commercial banks. The increase in salaries and bonuses is attributed to the boom in the crypto market in the first quarter of FY2024, driven by factors such as the launch of Bitcoin spot exchange-traded funds in the United States. The firm behind Upbit, Dunamu, saw significant increases in pay for executives and employees, with the average annual salary for staff reaching over $99,000 in the first half of the year, a 2.2-fold increase from the previous year.
The rise in salaries at Upbit appears to be mainly due to performance-based bonus payments, exceeding the average salaries of employees at top South Korean banks. Upbit’s profitability increased during the bull run, attracting retail investors to the platform. These small-scale investors, known as “ants,” are active in South Korean crypto markets, particularly on domestic exchanges like Upbit. Dunamu reported a 60.5% increase in operating income in the first quarter of FY2024 compared to the previous quarter and a 40% rise in operating profit, indicative of the exchange’s growth during the bull market.
Dunamu’s employees received generous performance bonuses, with the CEO of the company, Song Chi-hyung, receiving a financial package worth $3.52 million in the first half of the year. This figure is more than twice the compensation received by CEOs in the major financial sector, such as Citibank Korea and Hana Financial Group. Upbit’s rival, Bithumb, also experienced positive financial results in the second quarter of FY2023, with a significant increase in operating profits and sales driven by high trading volumes during the bull market.
The Financial Supervisory Service (FSS) compiled the data on crypto exchange salaries and bonuses, revealing the significant growth in compensation at Upbit. The rise in salaries for employees at crypto exchanges highlights the growing profitability of these platforms and the increasing demand for their services. The influx of retail investors during the bull market contributed to the growth of South Korean exchanges like Upbit and Bithumb, leading to substantial increases in operating income and profits for the companies. The data from FSS underscores the impact of the crypto market boom on the financial performance of major exchanges in South Korea.
