Dunamu Posts 78% Profit Drop as Crypto Trading Slump Hits Upbit’s Fee-Driven Revenue

TLDR:

• Dunamu’s Q1 operating profit dropped 78% year-on-year, falling to 88 billion won from 396 billion won.
• Transaction fees make up 97% of Dunamu’s revenue, making it highly exposed to crypto market slowdowns.
• Hana Bank acquired a 6.55% stake in Dunamu as part of a 1 trillion won investment agreement.
• Naver Financial agreed to acquire Dunamu in a $10 billion all-stock deal, with an IPO being considered.

Dunamu, the South Korean fintech firm operating Upbit, reported a sharp fall in earnings for the first quarter of 2025.

The company’s operating profit dropped 78% year-on-year to 88 billion won, roughly $59 million. Consolidated sales fell 55% to 235 billion won, compared to 516 billion won in the same period last year.

Net profit also declined 78%, reaching approximately 70 billion won versus 321 billion won previously.

Falling Trading Volume Squeezes Revenue and Customer Deposits

Dunamu attributed the decline in earnings directly to reduced trading activity across the virtual asset market. The global economic slowdown has pulled retail and institutional participants away from active crypto trading. This drop in participation translated immediately into lower fee income for the exchange.

Transaction fees account for 97% of Dunamu’s total revenue. When trading volume contracts, the company’s income shrinks almost in proportion. There is very little diversification to cushion the blow during periods of market cooling.

Customer deposits also felt the pressure during this period. Dunamu held around 5.2 trillion won in customer deposits during the first quarter, down 11% from December last year. Lower deposits suggest that users are withdrawing funds or reducing their exposure to the exchange.

The figures reflect a broader trend seen across crypto exchanges globally. Platforms that depend heavily on transaction fees tend to experience amplified earnings swings during market cycles. Dunamu’s results this quarter are consistent with that pattern.

Hana Bank Investment and Potential IPO Signal Long-Term Strategy

Despite the quarterly setback, Dunamu secured a major vote of confidence from the traditional finance sector. Hana Financial Group committed a 1 trillion won investment, equivalent to approximately $670 million, into the company.

As part of this deal, Hana Bank will acquire a 6.55% stake from Kakao Investment, becoming the fourth-largest shareholder.

The two companies also agreed to collaborate on infrastructure for a won-based stablecoin ecosystem. This partnership points toward a future where Korean fiat currency and blockchain technology operate on shared infrastructure. It is a strategic move that extends beyond short-term revenue concerns.

Separately, Naver Financial agreed in November 2025 to acquire Dunamu in an all-stock deal valued at approximately $10 billion.

The deal is still being finalized, but reports suggest an IPO is under consideration once the transaction closes. That would represent a significant milestone for South Korea’s crypto sector.

Together, these developments show Dunamu is actively positioning itself beyond exchange operations. Investment from a major bank and acquisition by a tech giant signal that the company’s long-term roadmap remains intact, despite near-term earnings pressure.