Fire at South Korean Crypto Mining Center Destroys 110 Rigs

A fire at a South Korean crypto mining center destroyed “about 110” mining rigs, firefighters confirmed on June 24.

Per MBC News and JTBC, only 30 of the rigs were operating when the fire broke out.

What Caused Fire at South Korean Crypto Mining Center?

Police and fire service officials say the fire broke out at 12:36 am on June 24, and was “extinguished in about 50 minutes.”

The blaze broke out in a building in the Samcheon District of Wansan Neighborhood in South Jeolla Province’s Jeonju.

Emergency rescue workers said it was “known” that the building in question was “equipped with” crypto mining machines.

Firefighters said that “part of the building” – some 33㎡–was “destroyed by the fire,” which also consumed all 110 mining rigs.

The local fire department estimated that the fire had “caused property damage” worth “over 9 million won [around $6,481].”

Police and fire authorities said they were still investigating the exact cause of the fire. Officers said they were interviewing witnesses near the scene.

However, firefighters claimed it was “unlikely” that an arsonist had started the blaze. Officials did not say which coins the rigs were being used to mine.

Jeonju summer temperatures can rise to an average maximum of around 31°C in August. This week has started off with highs of 25°C to 27°C, however.

Crypto Mining in South Korea

Despite the popularity of crypto in South Korea, large-scale industrial crypto mining operations are few and far between in the country.

Part of the reason for this is the cost of energy, with gas prices rising sharply in the industrial sector this decade. Household gas prices have also shot up by almost 25% in the past couple of years.

The government also raised electricity rates in 2023, while observers predict another price rise next month, Chosun reported.

Instead, many South Korean crypto mining collectives have looked to invest in overseas mining projects.

Scammers have also targeted the South Korean crypto community with suspected “fake” crypto mining-related projects.

In 2023, police warned of a rapid rise in crypto mining-themed dating scams, with victims encouraged to invest in overseas-based mining pools.