- Naver’s stock rose over 7% after reports of its acquisition of Upbit operator Dunamu.
- The deal positions Naver Pay and Upbit for a potential KRW-backed stablecoin rollout.
- Naver and Dunamu’s tie-up strengthens South Korea’s fintech and crypto integration.
South Korean internet giant Naver will acquire Dunamu, the operator of crypto exchange Upbit, through a comprehensive stock swap. The move links Naver Financial, the company’s payment subsidiary, directly with the nation’s largest crypto platform.
Structure of the Deal and Shareholders
The transaction will see Dunamu become a wholly owned subsidiary of Naver Financial. Unlike a merger, both companies will remain legally intact, creating a parent-subsidiary structure. The stock swap involves Naver Financial issuing new shares in exchange for those held by Dunamu’s existing shareholders.
Major Dunamu stakeholders include Chairman Song Chi-hyung with about 25.5%, Vice Chairman Kim Hyung-nyeon with 13.1%, Kakao Investment with 10.6%, Woori Technology Investment with 7.2%, and Hanwha Investment & Securities with 5.9%.
Once the exchange is finalized, Dunamu shareholders will hold equity in Naver Financial. However, the report noted that Naver will retain its position as the largest shareholder despite dilution.
Notably, industry sources believe Dunamu’s enterprise value is higher than Naver Financial’s. This means the issuance of new shares will be significant. The deal would vertically integrate Naver, Naver Financial, and Dunamu, linking internet services, digital payments, and crypto trading under one structure.
Market Reactions and Political Timing
Shares of Naver rose over 7% to KRW 246,000 ($175) following news of the planned acquisition. The announcement coincides with South Korea’s push to formalize a won-pegged stablecoin framework.
On September 24, the Democratic Party of Korea said it had established a digital asset task force. The group aims to introduce stablecoin legislation before the year ends. This timing suggests the consolidation may prepare both firms for upcoming regulations.
Analysts cited by the report noted that combining Naver Pay’s payment network with Upbit’s crypto infrastructure could create a powerful platform for a KRW-based stablecoin. This could influence the domestic financial market, especially in payment processing and reserve-backed digital assets.
At the same time, the move follows a regulatory change that allows financial holding companies in South Korea to increase fintech stakes to 15% from 5%. This broader change has encouraged collaborations between major tech firms and financial platforms.
Related: Accountant Arrested in South Korea Over $350K Crypto Loss
Stablecoin Prospects and Blockchain Outlook
The acquisition aligns with Dunamu’s recent unveiling of its Web3-based “GIWA Chain” and “GIWA Wallet” at the Upbit Developer Conference earlier this month. Dunamu CEO Oh Kyung-seok said stablecoins represent an “undeniable trend,” adding that the related framework would expand as adoption grows.
Industry sources explained that revenue from a KRW-pegged stablecoin could come from interest on deposits and government bond investments. Additional revenue streams may include stablecoin-backed loans, lower payment processing costs, and potential global expansion. The model resembles that pursued by U.S. exchange Coinbase.
The broader Naver Group is also undergoing internal changes. Reports suggest the company may adjust its AI strategy, exploring partnerships with U.S. big tech companies. The updated direction could be announced at the upcoming Naver Developer Conference in November, said the report.
Meanwhile, Naver’s takeover of Dunamu consolidates internet services, payments, and crypto trading under one corporate roof. The deal coincides with legislative moves on stablecoins by the South Korean government.
With GIWA Chain and Naver Pay integration, the acquisition demonstrates a direct link between regulatory momentum, blockchain infrastructure, and the future role of stablecoins in the nation’s economy.
