While the youth job market has been freezing over in recent times, cryptocurrency exchanges have stood out by significantly increasing their workforce. According to the Financial Supervisory Service’s electronic disclosure system, the number of employees at South Korea’s leading cryptocurrency exchanges, Dunamu (Upbit) and Bithumb Korea, surged from 682 at the end of 2021 to 1,047 by the end of June 2024, marking a 53.5% increase. This represents the largest workforce expansion since these companies began disclosing their management performance, far exceeding the overall employment growth rate of 5.9% in the country during the same period.
Contrasting Employment Trends: Youth Unemployment vs. Cryptocurrency Exchange Growth
Over the past few years, employment conditions for young people (aged 15-29) have steadily deteriorated. Since November 2022, the number of employed youths has continuously declined year-on-year, reflecting the overall downturn in the job market. However, in stark contrast to this trend, cryptocurrency exchanges have been aggressively expanding their workforce, demonstrating exceptional growth. In particular, Dunamu, the operator of Upbit, has seen its employee count soar by 68.6%, from 370 to 624, over the past two and a half years. Bithumb Korea has also experienced a 35.6% increase, growing from 312 to 423 employees.
Reasons Behind the Employment Surge and Future Outlook
Several factors have contributed to this rapid increase in employment at cryptocurrency exchanges. First, both Dunamu and Bithumb Korea have been ramping up their hiring and expanding their organizations in preparation for the implementation of the Virtual Asset User Protection Act (commonly known as the Virtual Asset Act). This legislation, designed to enhance the transparency and safety of cryptocurrency exchanges, has made it necessary for these companies to recruit a large number of specialized personnel to comply with regulatory requirements. Additionally, the rapid growth of the cryptocurrency market has been a significant factor. As trading volumes have increased, exchanges have needed to expand their workforce to keep up, leading to aggressive hiring strategies by Dunamu and Bithumb Korea.
The continued growth of cryptocurrency exchanges, even amid a broader employment slump, suggests that the virtual asset industry remains a sector with high growth potential. With the upcoming implementation of the Virtual Asset Act, further workforce expansion is expected, potentially having a positive impact on the job market.
