The price of Bitcoin is displayed on a screen at a Bithumb lounge in southern Seoul, April 19. Korea Times file

Cryptocurrency exchange Bithumb is aggressively pursuing partnership marketing following its zero-fee policy, implemented on Oct. 1, in an effort to increase the number of new users.

Attention is on whether the second-largest player in the industry will be able to expand its market share amid concerns over Upbit's market dominance, the largest cryptocurrency exchange in Korea.

Bithumb is expanding the workforce of its partnership development division, which was established earlier this year. Through this, the company aims to attract new users by forming partnerships across various industries, including retail, e-sports and the arts.

"Through the partnership development division, we are working to attract new members and popularize virtual assets," a Bithumb official said.

"Going forward, we plan to further expand partnerships across various industries, offering greater benefits to our customers while lowering the entry barriers for virtual assets, thereby increasing our connection with the general public."

In May, the company partnered with convenience store chain Emart24 to launch the "bitcoin meal box."

It has also launched partnerships with various brands such as CU, another convenience store chain, coffee chain A Twosome Place and bakery brand Tous Les Jours, offering customer events at least once a month.

These efforts come at a time when concerns about the monopolistic position of Upbit are growing.

Upbit's market dominance became a key issue during this year's National Assembly audit. Lawmakers noted that the firm held nearly 90 percent of the market share by trading volume at one point, raising concerns that this monopolistic structure could distort the virtual asset market.

This has prompted Financial Services Commission Chairman Kim Byoung-hwan and Fair Trade Commission Chairman Han Ki-jeong to pledge that they would look carefully into the issue.

Upbit's market share approached 90 percent through the first half of last year, though the gap has since narrowed as Bithumb introduced zero-fee policies twice, reducing the disparity.

According to data from market tracker CoinGecko, Upbit's current market share is in the high 50 percent range, while Bithumb's market share remains between the high 30 percent to the low 40 percent range.

Comparing customer deposits, Bithumb's deposits are only about one-fourth of Upbit's. According to Rep. Oh Gi-hyoung of the main opposition Democratic Party of Korea, Upbit's customer deposits amounted to about 3.7 trillion won ($2.7 billion) as of July, while Bithumb's stood at approximately 1 trillion won.