Naver's Dunamu Takeover: Stablecoin and Super App Strategy to Dominate South Korea's Digital Finance

South Korea's internet giant Naver is set to finalize its acquisition of Dunamu, operator of the country's largest cryptocurrency exchange Upbit, through a full equity swap, marking a pivotal move into the digital finance sector. The deal, which requires approval at upcoming board meetings on November 26, will see Naver's fintech subsidiary, Naver Financial, absorb Dunamu, creating a merged entity with ambitions to launch a Korean won-backed stablecoin and expand digital financial services according to reports. Industry sources estimate the share-swap ratio could be around 1:3 or 1:4, valuing Dunamu at approximately 15 trillion won and Naver Financial at 5 trillion won.

Dunamu's recent financial performance underscores its strategic value. The company reported a net income of 239 billion won in Q3 2025, a 300% year-over-year increase, driven by surging trading activity and favorable U.S. regulatory developments, including the passage of the Genius Act and Clarity Act. Consolidated revenue for the quarter rose 35% to $266 million, while operating profit climbed 54% to $162 million. Dunamu attributed its success to renewed institutional participation and improved market conditions following global crypto market rebounds in 2024 and 2025.

The acquisition aligns with Naver's broader strategy to dominate South Korea's digital finance landscape. By integrating Upbit's 50.6% domestic market share with Naver's vast user base and services, the merged entity aims to create a "super app" combining payments, e-commerce, and crypto trading. According to analysts, the planned stablecoin, pegged 1:1 to the won, could further cement Naver's influence in domestic and global transactions, particularly as South Korea's crypto industry expands under President Lee Jae-myung.

Regulatory scrutiny remains a critical hurdle. While authorities have confirmed the merger does not violate the country's separation of finance and virtual asset laws, antitrust concerns persist. Chairman Song Chi-hyung is expected to become the largest shareholder in the merged entity with a 28% stake, while Naver's ownership will be diluted to 17%. Mirae Asset Securities criticized the valuation as overly conservative, citing Kakao Pay's higher market cap as a benchmark.

The deal also faces competition from rival exchanges. Bithumb, Upbit's closest competitor, holds 46% of the domestic market and recently partnered with World Liberty Financial, a crypto venture linked to U.S. President Donald Trump. However, Naver's financial muscle-processing 80 trillion won ($58 billion) annually through Naver Financial-positions the merged entity to outpace rivals. Analysts note that the acquisition could stoke regulatory concerns if Upbit's market dominance grows unchecked, though current authorities have greenlit the merger.

Dunamu's regulatory battles further complicate the landscape. The company is contesting a three-month business suspension order from South Korea's Financial Intelligence Unit, which accused Upbit of inadequate customer due diligence. Dunamu argues the sanctions were excessive and could harm operations, despite affirming compliance measures according to reports.

The acquisition reflects a global trend of tech and fintech giants consolidating crypto infrastructure. Naver's move mirrors PayPal's Bitcoin integration and Meta's Diem project, leveraging centralized platforms to accelerate mainstream adoption. While purists may balk at corporate control of crypto ecosystems, the strategy could fast-track blockchain's integration into everyday transactions.