Naver Acquires Upbit to Lead South Korea's Blockchain Finance Revolution

Naver Corp. has agreed to acquire Dunamu Inc., the operator of South Korea's largest cryptocurrency exchange Upbit, in an all-stock deal valued at approximately $10.3 billion, signaling a strategic push into the digital assets market. Under the terms of the transaction, Naver's fintech arm, Naver Financial Corp., will issue 2.54 new shares for every 1 share in Dunamu, a structure designed to consolidate Naver's dominance in the local crypto ecosystem. The deal, first rumored in September, marks a pivotal step for Naver, often dubbed "South Korea's Google," as it seeks to integrate blockchain services into its broader digital infrastructure.

Upbit, which commands over 80% of South Korea's crypto market and ranks among the world's top five exchanges, will become a wholly owned subsidiary of Naver Financial according to reports. The acquisition aligns with Naver's long-term strategy to expand its fintech capabilities, particularly in payments and stablecoins. The company has hinted at plans to launch a won-backed stablecoin, a move that could reshape the domestic financial landscape but requires regulatory approval under South Korea's evolving legal framework.

The transaction's structure reflects a careful balance of ownership and control. While Naver's stake in Naver Financial will decrease from 70% to 17% post-merger, the company will retain voting rights through its majority influence over Dunamu's chairman, Song Chi-hyung according to industry reports. Shareholders of both entities will vote on the deal at general meetings on May 22, 2026, with the exchange expected to finalize by June 30, 2026. Regulatory hurdles, including approval from South Korea's Fair Trade Commission and credit information oversight bodies, remain a potential risk, though industry analysts view the integration as a net positive for Naver's ecosystem according to financial analysis.

The acquisition also highlights South Korea's shifting stance on crypto regulation. Recent policy changes, including the introduction of a stablecoin framework and tax incentives for crypto firms, have created a more favorable environment for digital finance. Naver's entry into this space could accelerate the adoption of blockchain-based services, leveraging its existing user base across platforms like Webtoon and Naver Pay. Analysts at Daeshin Securities and Eugene Investment & Securities note that the deal positions Naver to dominate the won-stablecoin market, a critical step in bridging traditional and digital finance.

As global crypto markets face volatility, Naver's bet on Upbit underscores its confidence in the sector's long-term potential. The integration of Dunamu's blockchain infrastructure into Naver Financial's operations is expected to create a $13.6 billion digital finance platform, solidifying Naver's role as a leader in South Korea's tech-driven economy.