South Korea’s telecom and financial giants, SK Telecom and Hana Financial Group, have acquired major shares in BitGo Korea, with Hana Financial owning 25% and SK Telecom holding 10%. The news was announced by BitGo CEO Mike Belsh during the Korea Blockchain Week 2024 event in Seoul. The collaboration between BitGo and the telecom giants aims to expand BitGo’s presence in the Korean market, with a focus on advancing cryptocurrency institutionalization in South Korea. Hana Financial plans to offer secure custody services through BitGo, while SK Telecom will improve accessibility for Korean clients by leveraging its expertise in security and identity verification.
BitGo Korea, a joint venture between BitGo and Hana Bank, is currently in the process of obtaining a license as a virtual asset service provider in South Korea. BitGo, founded in 2013, manages around $70 billion in assets under custody, with approximately 20% of on-chain Bitcoin transactions facilitated through its infrastructure. Hana Financial Group, one of South Korea’s largest financial institutions, holds assets of around $441.4 billion as of the end of 2023. SK Telecom, the country’s leading telecommunications provider, holds around 40% of the market share in South Korea.
In May, the Delaware Supreme Court ruled in favor of BitGo in a $100 million lawsuit against Galaxy Digital. The lawsuit resulted from a failed acquisition where Galaxy terminated the acquisition of BitGo in August 2022, citing a breach of contract. A recent survey revealed that many young South Koreans are losing faith in the national pension system, with over three-quarters of individuals aged 20-39 expressing mistrust in state-issued pensions. Instead, a majority are turning to cryptocurrencies and stocks as a better alternative for retirement planning.
Interest in cryptocurrencies among South Koreans is high, with approximately 7% of election candidates reported to own digital assets. South Korea is set to introduce stricter regulations for token listings on exchanges, including the blocking of tokens that have been hacked. The South Korean won is the most traded fiat currency pair in the global cryptocurrency market, highlighting the country’s significant role in the industry. The collaboration between BitGo, SK Telecom, and Hana Financial Group in South Korea marks a significant step towards enhancing the crypto ecosystem in the country and increasing institutional adoption of digital assets.
