The prices of cryptocurrencies are displayed on a screen inside the lounge of Bithumb, Korea’s second-largest cryptocurrency exchange, in southern Seoul, March 4. Yonhap

Korean banks are doubling down on partnerships with cryptocurrency exchanges despite lingering reputational risks from exchange-related incidents, as tighter household debt controls and lending curbs squeeze loan growth and push lenders to seek new profit streams, industry officials said Friday.

A number of commercial and internet banks are already tied to major platforms: K Bank with Upbit, KB Kookmin Bank with Bithumb, KakaoBank with Coinone, Shinhan Bank with Korbit and Jeonbuk Bank with GOPAX.

These alliances persist despite concerns over potential fallout from…