Dunamu Reports 78% Drop in Q1 Operating Profit as Upbit Trading Volume Slows

Dunamu’s first-quarter 2026 earnings fell sharply as lower virtual asset trading volume reduced fee revenue, while Hana Financial confirmed a 1 trillion won stake purchase tied to broader digital finance cooperation.

Summary

Dunamu, the operator of South Korea’s largest crypto exchange Upbit, reported steep year-over-year declines in first-quarter 2026 earnings as weaker virtual asset trading volume hit its fee-based business. Consolidated revenue fell 55% to 234.6 billion won ($156 million), operating profit dropped 78% to 88 billion won ($60 million), and net profit also declined 78% to 69.5 billion won ($46 million). The company said the downturn was driven by lower market trading volume, a key factor because about 97% of Dunamu’s revenue comes from transaction fees. Client funds held by the company stood at about 5.199 trillion won ($3.4 billion) at the end of the quarter, down 11% from December 2025. Despite the earnings decline, Hana Financial Group confirmed a 1 trillion won ($669 million) acquisition of a 6.55% stake in Dunamu from Kakao Investment, with plans to cooperate on digital financial products including stablecoin initiatives, although the transaction still requires regulatory approvals.

Terms & Concepts
  • Virtual asset trading volume: The total amount of cryptocurrency trading activity over a given period. Lower volume usually means less fee revenue for exchanges.
  • Stablecoin: A digital asset designed to maintain a stable value, typically by being linked to a fiat currency or other reference asset.
  • Crypto exchange: A platform where users buy, sell, and trade cryptocurrencies. Its earnings are often heavily influenced by market activity.