South Korean cryptocurrency exchanges Dunamu and Bithumb significantly increased their information security investments last year, with Dunamu allocating 24.34 billion won and Bithumb 12.37 billion won according to Korea Internet & Security Agency (KISA) disclosures on the 13th. The aggressive spending surge — Dunamu's 64.7% year-over-year increase and Bithumb's 34.8% rise — reflects escalating virtual asset hacking threats and the industry's focus on user asset protection as a core trust factor. Virtual asset service providers are mandated to obtain Information Security Management System (ISMS) certification under the Act on Reporting and Using Specified Financial Transaction Information.
Dunamu Allocates 24.34 Billion Won to Information Security
Dunamu, operator of Upbit, invested 24.34 billion won in information security last year, a 64.7% increase from the previous year's 14.8 billion won. The company's dedicated security workforce expanded to 43.9 personnel, adding more than 10 employees (30.6% growth) within one year. Dunamu's total information technology (IT) investment reached 210.3 billion won, up 36.2%, resulting in security spending representing 11.6% of IT investment.
Bithumb Invests 12.37 Billion Won, Elevates Security Leadership to Executive Level
Bithumb allocated 12.37 billion won to information security, a 34.8% year-over-year increase, with dedicated personnel rising to 42.2. The exchange strengthened its security organizational structure by elevating the Chief Information Security Officer (CISO) and Chief Privacy Officer (CPO) roles from non-executive (security office director) positions to executive-level security leadership. Bithumb's total IT investment jumped over 40% to 130.7 billion won, though the security investment ratio dipped slightly from 9.9% to 9.5%.
Among exchanges, Dunamu and Bithumb are subject to mandatory information security disclosure, while Gopax operator Strimi voluntarily participated in disclosure. Coinone and Korbit did not disclose. Strimi's security investment was 710 million won last year, down 12.7% from the previous year's 810 million won, but its IT investment ratio of 13.4% was the highest among disclosing exchanges.
Cryptocurrency Exchanges Surpass Major Securities Firms in Security Spending
The sustained aggressive investment enabled exchanges to overtake major securities firms in security spending. Last year's information security disclosures from leading securities firms showed Korea Investment & Securities at 18.8 billion won, Shinhan Investment & Securities at 17.1 billion won, NH Investment & Securities at 12.4 billion won, and Hana Securities at 10 billion won. While the securities industry also increased investment year-over-year, Dunamu's 24-billion-won commitment significantly surpassed Korea Investment & Securities, which had held the lead until the previous year, and Bithumb matched NH Investment & Securities.
The gap widens further when workforce size is considered. Dunamu's total staff of 661.9 is one-fifth that of Korea Investment & Securities (2,956.1 employees), yet its information security investment exceeds the securities firm.
Banks Outspend Exchanges in Absolute Terms, Exchanges Lead in IT Investment Ratio
Compared to the four major commercial banks, exchange investment amounts remain substantially lower in absolute terms. Last year, Kookmin Bank invested 43.3 billion won in information security, Hana Bank 37.2 billion won, Shinhan Bank 36.9 billion won, and Woori Bank 36.4 billion won — 1.5 to 1.8 times Dunamu's level.
However, the proportion of IT investment dedicated to information security is higher at exchanges than banks. The four major banks' security investment ratios ranged from 8.0% to 9.1%, below Dunamu, Bithumb, and Strimi.
Regulatory Certification Requirements Drive Industry Security Investment
The exchanges' aggressive security investment is attributed to heightened virtual asset hacking threats and the emergence of user asset protection as a core business trust factor. Virtual asset service providers are required to obtain ISMS certification under the Act on Reporting and Using Specified Financial Transaction Information. Dunamu and Bithumb hold seven and six information security certifications respectively, including Information Security Management System and Personal Information Protection (ISMS-P).
FAQ
How much did Dunamu invest in information security last year?
Dunamu invested 24.34 billion won in information security last year, a 64.7% increase from the previous year's 14.8 billion won.
How do cryptocurrency exchange security investments compare to banks?
The four major banks invested 36.4 to 43.3 billion won each in information security last year, 1.5 to 1.8 times Dunamu's investment. However, exchanges dedicate a higher percentage of IT budgets to security (Dunamu 11.6%, Bithumb 9.5%) compared to banks (8.0-9.1%).
Why are cryptocurrency exchanges increasing security spending?
Exchanges are increasing security investment due to escalating virtual asset hacking threats and the recognition that user asset protection is a core business trust factor. Virtual asset service providers are also mandated to obtain ISMS certification under financial transaction information law.
