Binance partners with Lee Woong-yeol to launch crypto exchange

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Binance is reportedly in talks with the former head of South Korean chemical and textile conglomerate Kolon Group to establish a new virtual asset exchange in the country.

Lee Woong-yeol, honorary chairman of Kolon, is cooperating with other native blockchain companies to create the crypto trading platform that would respond to government and financial authorities. South Korean authorities are enforcing tough new rules for crypto businesses to minimize the risks of money laundering and market manipulation, which came into effect last year.

Kolon, a conglomerate with nearly 70 associated companies, has stakes in South Korean stock exchanges like Dunamu. It was part of its plan to reach $2.6 billion in revenue by 2025.

According to local Korean news sources, the honorary president has shown interest in blockchain-related business since leaving amid an executive reshuffle in 2018.

The news is part of Binances’ broader plans to return to South Korea after pulling out of the lucrative market in 2021. Prior to this alliance with Lee Woong-yeol, the world’s largest cryptocurrency trading platform acquired majority stake in GOPAX.

The deal was funded by the Industry Recovery Initiative (IRI), which the exchange established in November to help reduce the cascading negative effects of FTX’s collapse. At the time, CEO CZ committed $1 billion to the fund during a public address, with an additional $1 billion to be added should the need arise.

Pending official approval from Korean authorities, Binance is in the final stages of finalizing the transaction, which would allow it to operate in the South Korean crypto market again.

Exact details were not disclosed, but according to a report from local news outlet Decenter, Binance bought a 41.2% stake from CEO Lee Jun-haeng. Gopax’s largest shareholder will maintain the current system of representation for the time being in order to ensure stable management.

The collapse of crypto exchange FTX has impacted South Korean exchanges, including GOPAX. The Seoul-based platform has suspended payments in its DeFi service GOFi, which was introduced in partnership with crypto-lenderGenesis Global Capital.

CEO Changpeng Zhao revealed earlier in November that Binance was preparing to register with South Korean financial authorities by complying with local regulations. The exchange previously opened a local office four years ago, but had to cease its crypto trading services in December 2020.

Binance also halted global trading services for the South Korean Won in 2021 as local regulators banned foreign exchanges from offering services to local residents.

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