Some South Korean crypto exchange workers are now earning higher salaries than staff in some of the nation’s top commercial banks, according to new data. The average salaries at the Upbit exchange have more than doubled year-on-year, with the platform’s operator paying out over $2.4 million in bonuses to its CEO in the first half of the financial year. This increase in salaries and bonuses is attributed to the crypto market boom in the first quarter of FY2024, driven by the launch of Bitcoin spot exchange-traded funds in the United States.
The Financial Supervisory Service (FSS) compiled the data, revealing that on average, Dunamu paid its 601 employees just over $99,000 each in the first half of this year, marking a 2.2-fold increase from the previous year. The rise in salaries appears to be largely due to performance-based bonus payments. Upbit’s rising staff payments exceed the average annual salaries of employees at South Korea’s top four banks, signaling the exchange’s profitability during the bull market, which saw the return of retail investors to the crypto markets.
The surge in retail investors, known as “ants,” in the South Korean markets has led to an increase in operating income for exchanges like Upbit. Dunamu reported a 60.5% increase in operating income in the first quarter of 2024, compared to the previous quarter. Additionally, the exchange saw almost a 40% rise in operating profit compared to the previous financial year. This rise in profitability has allowed the exchange to provide generous performance bonuses to its employees, with the CEO of Dunamu receiving a financial package worth $3.52 million in the first half of the year.
In comparison to major financial sector CEOs, the compensation of the Dunamu CEO stands out, with figures exceeding those of CEOs in traditional banks. For example, the CEO of Citibank Korea received $1.54 million in the same period, while the Chairman of Hana Financial Group received $1.35 million. Upbit’s rival, the Bithumb exchange, also experienced positive financial results for the second quarter of FY2023, with high trading volumes during the bull market contributing to a significant increase in operating profits.
Overall, the rise in salaries and bonuses for South Korean crypto exchange workers reflects the increased profitability of exchanges during the bull market. The influx of retail investors and high trading volumes have boosted the financial performance of platforms like Upbit and Bithumb, leading to higher payouts for employees. This trend highlights the growing significance of the crypto market in South Korea and the rewards reaped by those working in the industry. With the crypto market showing no signs of slowing down, it is likely that salaries and bonuses for exchange workers will continue to rise in tandem with the market’s success.
