Naver Acquires Dunamu to Unify Crypto and Payments Ecosystems

Naver Financial, the fintech division of South Korean tech giant Naver, is advancing plans to acquire Dunamu, the operator of the country’s largest cryptocurrency exchange Upbit, through a stock swap agreement. The deal, which would make Dunamu a wholly owned subsidiary of Naver Financial, is expected to be formalized following board approvals, according to reports from Yonhap News and ChosunNaver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[1]. Naver Financial currently holds approximately 69% of Naver Group, positioning the acquisition as a strategic expansion into digital finance and stablecoin initiatives.

The proposed structure involves Naver Financial issuing new shares to Dunamu’s shareholders in exchange for their stakes, creating a parent-subsidiary governance model. This approach mirrors Kakao’s acquisition of Daum, where the acquired entity retained its legal identity but operated under the parent companyNaver in talks to take over Upbit operator Dunamu via stock swap^[2]. Key stakeholders in Dunamu include Chairman Song Chi-hyung (25.5%), Vice Chairman Kim Hyoung-nyon (13.1%), and institutional investors Kakao Investment (10.6%) and Woori Technology Investment (7.2%)Naver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[1]. However, negotiations have encountered challenges due to valuation discrepancies, as Dunamu’s estimated market value exceeds that of Naver FinancialNaver in talks to take over Upbit operator Dunamu via stock swap^[2].

The acquisition aligns with Naver’s broader ambitions to leverage Upbit’s dominance in South Korea’s crypto market. Upbit, ranked fourth globally by trading volume with $2.9 billion in 24-hour spot transactionsNaver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[1], holds over 50% of the domestic exchange market. By integrating Upbit’s platform with Naver Pay—a mobile payment service processing $57 billion annually—Naver aims to create a unified ecosystem spanning payments, e-commerce, and crypto tradingNaver in talks to take over Upbit operator Dunamu via stock swap^[2]. Analysts note that this consolidation could strengthen Naver’s competitive edge against rivals like Kakao Pay and TossUpbit Operator Dunamu Reportedly to Consolidate with Naver^[3].

A critical component of the deal is the development of a Korean won-backed stablecoin. Naver and Dunamu have already collaborated on this initiative, with industry forecasts suggesting potential annual revenues of 300 billion won by 2030 if the stablecoin gains tractionNaver in talks to take over Upbit operator Dunamu via stock swap^[2]. South Korea’s regulatory environment has become more favorable under President Lee Jae-myung’s administration, which has prioritized crypto legislation, including measures to legalize stablecoinsNaver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[1]. The Bank of Korea has also indicated support for banks as primary stablecoin issuers, though the integration of corporate players like Naver could reshape the landscapeUpbit Operator Dunamu Reportedly to Consolidate with Naver^[3].

The potential merger has already impacted market dynamics. Naver’s stock surged 11.4% following news of the acquisition, while Dunamu’s shares fell 14% on the over-the-counter marketNaver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[1]. This volatility reflects investor uncertainty about the deal’s terms and Dunamu’s future as a standalone entity. Meanwhile, competition in South Korea’s crypto sector is intensifying, with rivals like Bithumb recently securing partnerships to counter Upbit’s market dominanceUpbit Operator Dunamu Reportedly to Consolidate with Naver^[3].

The deal’s success could redefine South Korea’s fintech sector. Naver Financial’s existing payment infrastructure, combined with Upbit’s user base of over 16 million and projected market growth to $1.3 billion by 2026Naver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[1], positions the company to challenge global players. However, regulatory scrutiny remains a risk, as lawmakers have raised concerns about monopolistic practices in the crypto exchange marketUpbit Operator Dunamu Reportedly to Consolidate with Naver^[3].