Fallout from Bitcoin Overpayment as KB Kookmin Bank Shortens Contract with Bithumb

▲ Bithumb, Bitcoin (BTC), virtual assets/ChatGPT-generated image ©

Market attention is focused on KB Kookmin Bank’s decision to extend its KRW deposit and withdrawal partnership with virtual asset exchange Bithumb for only six months.

According to the financial industry on the 24th, KB Kookmin Bank has decided to renew its contract with Bithumb while shortening the contract period from the previous one-year term to six months. While maintaining the partnership itself, the bank appears to have placed greater emphasis on risk management by halving the contract duration.

The decision is reportedly influenced by a recent large-scale Bitcoin mispayment incident at Bithumb. Following the incident, concerns were raised over the exchange’s internal control system, prompting calls within the banking sector to strengthen management and oversight.

KB Kookmin Bank has maintained its KRW deposit and withdrawal partnership with Bithumb since March 24 of last year. Although the renewed agreement preserves the cooperative relationship, the shift to a short-term, six-month contract is expected to make improvements in internal controls and operational stability key evaluation factors going forward.

Within the financial industry, the move is interpreted as a strategy to “avoid cutting ties while minimizing risk.” Depending on whether additional incidents occur and the results of inspections by financial authorities, there remains the possibility that the terms of future renewals could be adjusted again.

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