KB Kookmin Bank, which is responsible for the Korean won accounts of the cryptocurrency exchange Bithumb, is experiencing significant indirect effects. As Bithumb's customers and existing deposits move to Kookmin Bank, it is expected that the bank will not only attract new customers but also enjoy operational profits.
According to Kookmin Bank, the number of new accounts opened at the bank on the 20th alone exceeded 20,000. Typically, Kookmin Bank opens about 3,000 to 4,000 new accounts daily, indicating an increase of more than five times. The surge in account openings is attributed to Bithumb's pre-registration event, which started on the 20th to encourage existing users to transition to Kookmin Bank by linking real-name accounts.
During the four days from the 13th to the 17th, when the transition of Bithumb's won accounts was first announced, the number of new accounts reached 55,116. This is more than double the approximately 20,000 new accounts opened in the same four-day period from the 6th to the 10th. As Bithumb's account deposits and withdrawals with Kookmin Bank are set to begin at the end of March, the number of new accounts at Kookmin Bank is expected to continue to rise.
As the number of accounts rapidly increases, a large-scale "MoneyMove" from Bithumb's existing won accounts at NH NongHyup Bank to Kookmin Bank is also anticipated. As of the third quarter of last year, the size of Bithumb's deposits was 932.7 billion won. Most Bithumb users are currently favorably disposed toward switching banks, suggesting that Kookmin Bank could receive operational profits from deposits amounting to 1 trillion won as early as March. Kookmin Bank plans to manage these deposits through money market funds.
There are several reasons for Bithumb changing its won account partner after seven years. First, it has been noted that NH NongHyup Bank's application lacks competitiveness among investors in their 20s and 30s, who make up a significant portion of cryptocurrency investments. Additionally, unlike other bank partners, NH NongHyup has been reportedly passive in addressing complaints about opening accounts for cryptocurrency transactions.
Bithumb's partnership with Kookmin Bank is also advantageous regarding corporate accounts, which Bithumb considers a future business avenue. NH NongHyup Bank has the smallest corporate loan balance among the top five commercial banks. As of the end of the third quarter last year, NH NongHyup had a corporate loan balance of 104.9 trillion won, the least, while Kookmin Bank had the most at 172.4 trillion won. Shinhan Bank, which has a partnership with the cryptocurrency exchange Korbit, had a corporate loan balance of 158.9 trillion won, followed by Hana Bank at 161.4 trillion won and Woori Bank at 168.2 trillion won.
Financial authorities have announced plans to gradually allow corporate accounts this year, and Bithumb has been quickly forming a corporate sales team since last year to secure market share. Given that corporations typically engage in transactions of larger sizes than individuals, there is speculation that significant changes may occur in the cryptocurrency exchange market. Currently, Upbit holds more than 70% of the domestic cryptocurrency exchange market, while Bithumb aims to find new opportunities through corporate accounts.
However, there are concerns among investors regarding the account changes. If a new real-name account is created at Kookmin Bank, it will be set as a limited transaction account, restricting the daily transfer limit to 1 million won for the first three months. A Bithumb representative noted, "We are aware of the concerns and have requested Kookmin Bank to address them, and we are currently discussing ways to minimize customer inconvenience," adding that a solution to the limit issue is expected before the bank change occurs.