Dunamu, the parent company of South Korea's leading crypto exchange Upbit, has announced a substantial increase in shareholder dividends.
Dunamu, the parent company of South Korea's leading crypto exchange Upbit, has announced a substantial increase in shareholder dividends after reporting an 85% year-over-year rise in operating profit for 2024.
At a recent shareholders' meeting, the company approved a cash dividend of 8,777 Korean won ($5.99) per common share, a notable jump from 2,937 won ($2) per share distributed the previous year.
The total amount allocated for cash dividends under the "distribution of retained earnings" is nearly 300 billion won ($204.5 million). This announcement follows Dunamu's report of a yearly operating profit of approximately 1.18 trillion won ($809 million) and a net profit increase of 22.2% to 983.8 billion won ($671 million).
Dunamu attributed its strong financial performance to several market factors, including the halving of Bitcoin and favorable investment sentiment. The company noted that global liquidity, influenced by pro-cryptocurrency policies following Donald Trump's election as U.S. President, played a significant role in its growth.
Expectations surrounding potential interest rate cuts in the U.S. also contributed to the positive market environment.
Despite its success, Upbit has encountered increased scrutiny from local financial regulators. The South Korean Financial Intelligence Unit (FIU) has raised concerns regarding the exchange's compliance with regulations, particularly related to transactions with unregistered foreign exchanges and Know Your Customer (KYC) practices.
As a result, the FIU sought to impose restrictions on new users' external crypto deposits and withdrawals for three months. However, a Seoul court has granted Dunamu an injunction to pause these penalties for 30 days.
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