Bithumb partners with Kookmin Bank, set to begin in March 2025

Bithumb, South Korea’s second-largest cryptocurrency exchange, has announced it will switch its banking partner from NongHyup Bank to Kookmin Bank starting in March 2025. This move is part of Bithumb’s broader strategy to tap into the mainstream market and attract younger users. According to a report from The Korea Times on January 13, South Korea’s Financial Intelligence Unit has approved Bithumb’s application for the change, which will end its long-standing partnership with NongHyup Bank on March 23. Starting March 24 at 11:00 AM KST, Bithumb users will no longer be able to use NongHyup Bank for deposit and withdrawal services. Instead, they will need to open a Kookmin Bank account and link it to their Bithumb account.

Users will be able to start linking their Kookmin Bank accounts to Bithumb accounts beginning on January 20 at 09:00 AM KST. Bithumb has assured its users that more detailed instructions on the linking process will be provided in a separate notice. The exchange also expressed gratitude to NongHyup Bank for their partnership over the years and reassured users that the transition to the new banking partner would be smooth, ensuring continued stability in its services.

The shift to Kookmin Bank is seen as a strategic decision to appeal to younger demographics, as Kookmin is popular among South Koreans in their 20s. A survey found that Kookmin Bank ranks second in popularity, behind only KakaoBank, which is deeply integrated with the popular messaging app KakaoTalk. Last year, Kookmin introduced a new “So Young” debit card that offers special discounts at businesses favored by teenagers, further cementing its connection with younger audiences. The move also highlights Bithumb’s aim to increase its market reach and enhance its appeal to a broader base of users.

Kookmin Bank, one of South Korea’s “big four” banks, joins Shinhan Bank, Hana Bank, and Woori Bank in being a major financial institution supporting the cryptocurrency industry. Currently, Korbit, another South Korean crypto exchange, is the only other exchange partnered with one of the big four banks, Shinhan Bank.

The decision to switch to Kookmin Bank is expected to help Bithumb expand its operations, solidify its position in the competitive South Korean crypto market, and align with trends toward greater involvement of traditional financial institutions in the crypto space.