Employees and executives of Dunamu, the operator of the Upbit cryptocurrency exchange, are earning higher average salaries than their counterparts at some of South Korea’s largest banks. According to data released by the Financial Supervisory Service (FSS) and reported by local media outlet News1, the average income of Dunamu employees in the first half of 2024 was 133.73 million South Korean won (approximately $99,500).
This figure significantly surpasses the average salary of employees at major South Korean banks, including KB Kookmin Bank, Shinhan Bank, Hana Bank, and Woori Bank. The FSS data indicates that the average salary of staff at these leading banks stands at 116 million won, or around $86,700.
Year-on-Year Increase
Dunamu’s employees have not always enjoyed such high compensation levels. In the first half of 2023, the average income for employees was 59.44 million won (about $44,100). The current average salary reflects a remarkable 124% increase year-on-year, highlighting the strong performance of the cryptocurrency market in the first two quarters of 2024.
The substantial rise in Dunamu’s average salary is closely linked to the company’s performance in the booming cryptocurrency market. A significant catalyst was the approval of the first spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) on January 10, 2024. This approval marked a broader acceptance of digital assets in the U.S., which, in turn, spurred a surge of interest in virtual assets in South Korea.
The ripple effect of the SEC’s decision was evident in Dunamu’s financial results. In the first quarter of 2024, Dunamu reported consolidated sales of 531.1 billion won (nearly $400 million). This represented a 60.5% increase in operating income compared to the fourth quarter of 2023. As a result of this success, Dunamu appears to have rewarded its employees with substantial performance bonuses.
Upbit’s Market Activity
On March 5, 2024, Upbit’s 24-hour trading volume soared to $15 billion as Bitcoin’s price reached a new high of $69,200. This bullish momentum was driven by large inflows into the U.S.-based spot Bitcoin ETFs. South Korean traders, however, pushed Bitcoin’s price even higher on the Upbit platform. At around 3:00 am UTC on March 5, Bitcoin was trading at 96,734,000 won (roughly $72,504) on Upbit.
The price difference between Bitcoin’s global trading price and its price in South Korea is often referred to as the “Kimchi Premium,” a term named after the country’s famous fermented side dish. This premium reflects the unique dynamics of the South Korean market, where strong demand and limited supply can lead to significant price discrepancies compared to global markets.
The dramatic increase in salaries for Dunamu employees underscores the rapid growth and profitability of the cryptocurrency industry in South Korea, particularly in comparison to the more traditional banking sector. As the digital asset market continues to evolve, it will be interesting to see how compensation trends develop and whether other sectors can keep pace with the financial rewards seen in the crypto space.
