Mirae Asset and Korea Investment Take Their Rivalry Into Digital Assets

Mirae Asset is moving to acquire Korbit as Park Hyeon-joo seeks an early foothold in the digital asset market.

Korea Investment Securities is weighing a Coinone investment as exchanges regain attention amid stablecoin and STO expectations.

Park Hyeon-joo, Chairman of Mirae Asset Group, left, and Kim Nam-goo, Chairman of Korea Investment Holdings.

[Insight Korea = Sim Min-hyeon]

Mirae Asset Group Chairman Park Hyeon-joo and Korea Investment Holdings Chairman Kim Nam-goo are moving their rivalry beyond the securities business and into the digital asset market. The two groups, long competitors in wealth management and global investment, are now expanding the battlefield around virtual asset exchanges.

Mirae Asset Moves to Secure Korbit

According to financial investment industry sources on the 20th, Mirae Asset Consulting, an affiliate of Mirae Asset Financial Group, has agreed to acquire a 92.06 percent stake in virtual asset exchange Korbit for about 133.5 billion won. The deal is currently under review by the Fair Trade Commission. Korea Investment Securities, meanwhile, is reportedly pursuing an investment in Coinone together with global virtual asset exchange OKX. Market participants say the two sides are discussing ways to each secure stakes of around 20 percent, drawing attention to the possibility of a reshaping of South Korea’s digital asset market.

Mirae Asset Financial Group is the more aggressive mover. By pushing ahead with the Korbit acquisition, it is seeking to secure a virtual asset exchange. Analysts say the move is less a simple merger and acquisition than a strategic entry into the digital asset market.

On the surface, Korbit does not appear especially attractive. According to virtual asset data provider CoinGecko, Korbit ranks fourth among South Korea’s won-based exchanges. Its trading share is below 1 percent. Since Upbit and Bithumb account for most trading volume, some argue that Korbit’s acquisition appeal is limited if judged only by the numbers.

Still, analysts say Mirae Asset’s choice of Korbit reflects a different calculation. Korbit is South Korea’s first virtual asset exchange and has experience operating a won-based exchange as well as a history of responding to regulatory changes.

Its relatively stable governance structure is also considered a strength, with Nexon holding company NXC and SK Planet having participated as major shareholders. Industry observers believe Korbit may have been the most realistic option left for collaboration with the financial sector, given that Upbit and Bithumb are effectively not acquisition targets.

South Korea’s virtual asset market has gone through slower trading volume and price adjustments over the past year, lowering exchange valuations compared with previous highs. The exchange business is also vulnerable to market volatility because of its heavy dependence on individual spot trading.

At the same time, however, the regulatory environment is improving. Expectations are growing around security token offerings, or STOs, real-world asset tokenization, or RWA, discussions on allowing corporate trading and the possible introduction of won-denominated stablecoins. As virtual assets increasingly move toward the mainstream financial market, the value of exchanges is once again drawing attention.

The proposed acquisition is also notable because it shows that Park’s publicly stated digital asset strategy has entered the execution stage. At a ceremony last year marking Mirae Asset’s customer assets reaching 1,000 trillion won, Park said he would “create a global virtual asset wallet that can trade all assets, including virtual assets,” and expressed his willingness to recruit talent and pursue M&A.

This year, Park is said to have described the Korbit acquisition as “the last major project I will pursue in my lifetime.” In the United States, Robinhood offers stock and virtual asset trading on a single platform. Mirae Asset is also believed to be considering a similar structure after establishing a digital asset base through a nonfinancial affiliate.

Korea Investment Securities Prepares for Digital Asset Entry

Korea Investment Securities, an affiliate of Korea Investment Holdings led by Chairman Kim Nam-goo, also appears to be preparing to enter the digital asset market. Market sources say Korea Investment Securities may invest in Coinone together with OKX as a way to lay the groundwork.

If Mirae Asset’s approach is to directly secure an exchange through the Korbit acquisition, Korea Investment Securities appears to be leaning toward strategic investment and cooperation. Rather than securing control of an exchange, it is being discussed as entering the market through a partnership. Coinone is South Korea’s third-largest won-based exchange after Upbit and Bithumb. It is seen as having additional growth potential if corporate trading is permitted and financial sector participation expands in the future.

Kim has recently expanded wealth management, retail and global businesses. Analysts say the addition of virtual assets could further broaden Korea Investment Securities’ investment reach.

The growing interest among securities firms in exchanges is also tied to South Korea’s regulatory environment. Expectations are rising for stablecoins and broader digital asset activity, but financial companies face limits in directly operating digital asset businesses.

Since the implementation of the Act on Reporting and Using Specified Financial Transaction Information in 2021, companies seeking to operate digital asset businesses have been required to register as virtual asset service providers, or VASPs. But direct entry by financial companies remains restricted. Bank custody businesses and brokerage by securities firms are also effectively blocked in the digital asset sector.

That is why exchange value is coming back into focus. Exchanges serve as core distribution networks for digital asset buying, selling, exchange and transfer. They also perform major functions including asset transfer, custody and management, and intermediation for exchanges between digital assets. If discussions on a digital asset basic law and won-denominated stablecoins move into full swing, financial companies that own exchanges are likely to gain an early advantage.

This ultimately explains why Mirae Asset is looking at Korbit and Korea Investment Securities is looking at Coinone. While direct links between exchanges and securities businesses remain difficult for now, analysts say the strategy is to secure trading and settlement systems, anti-money laundering systems and internal control structures in advance to prepare for future regulatory change.

“What securities firms are looking at is not today’s trading volume or market share, but the digital asset market that will open in the future,” said one exchange industry official who requested anonymity. “If stablecoins, STOs and the corporate market take off, exchanges are likely to become financial infrastructure beyond simple trading platforms. The competition that has continued in the stock market could also expand into the digital asset market.”

- This article was translated by ChatGPT. (이 기사는 챗GPT가 번역했습니다.)