Naver Acquires Dunamu to Lead South Korea's $1.3B Crypto Revolution

Naver, South Korea’s leading internet and fintech conglomerate, is in advanced discussions to acquire Dunamu, the operator of Upbit—the country’s largest cryptocurrency exchange—via a stock swap deal, marking a strategic expansion into digital finance and stablecoin initiatives. The potential acquisition, first reported by local media, has already triggered a sharp 11.4% surge in Naver’s stock price, reflecting investor optimism about the move. Naver Financial, the company’s fintech arm, is negotiating terms with Dunamu, which also includes collaboration on stablecoins and unlisted securities trading. While no final details have been disclosed, the deal is expected to be finalized within a monthNaver Stock Up 11% On Tie-Up Talks With Korean Crypto Exchange Giant Dunamu^[1].

The stock swap structure would involve Naver Financial issuing new shares to Dunamu shareholders, effectively making the crypto exchange a subsidiary. This aligns with Naver’s broader strategy to leverage Dunamu’s expertise in blockchain technology and digital asset infrastructure. Dunamu, founded in 2012 by South Korean entrepreneur Song Chi-hyung, operates Upbit, which processes over $2.9 billion in daily trades and holds a 2.5% stake acquired by Hybe (the K-pop management company) for $400 million in 2021. Its valuation was previously estimated at $17 billionNaver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[2].

The acquisition comes as South Korea’s crypto market gains regulatory momentum. President Lee Jae-myung’s administration has prioritized crypto-friendly policies, including legislation to legalize stablecoins. This environment has spurred interest in digital finance, with major banks planning to launch won-pegged stablecoins by late 2025. Naver’s entry into this space could accelerate the adoption of blockchain-based financial services, particularly through its Naver Pay platform, which already supports digital asset walletsSouth Korean Internet Giant Naver to Buy Crypto Exchange^[3].

Dunamu’s integration into Naver’s ecosystem is expected to bolster the latter’s fintech ambitions. The combined entity aims to expand into global markets, leveraging Upbit’s existing user base of over 16 million in South Korea and its position as the fourth-largest exchange globally by trading volume. Naver’s recent foray into crypto includes a partnership with Malta-based Chiliz to launch a digital asset wallet, signaling a long-term commitment to blockchain innovationNaver Stock Up 11% On Tie-Up Talks With Korean Crypto Exchange Giant Dunamu^[4].

Analysts view the acquisition as a pivotal step for Naver to compete with global fintech leaders. With South Korea’s crypto market projected to reach $1.3 billion by 2026, the deal positions Naver to capitalize on growing demand for decentralized finance and tokenized assets. The move also aligns with broader industry trends, as institutional investors increasingly allocate capital to crypto infrastructure. Naver’s Q2 financials, which reported $2 billion in revenue and $355 million in net profit, further underscore its capacity to fund ambitious digital initiativesNaver to Acquire Upbit Operator Dunamu in Stock Swap Deal^[5].

The transaction underscores the maturing crypto landscape in South Korea, where regulatory clarity and technological adoption are converging. Naver’s acquisition of Dunamu not only strengthens its market position but also signals confidence in the long-term potential of digital assets. As the deal progresses, stakeholders will closely monitor its implications for competition, innovation, and the broader fintech sector in Asia.