South Korea’s Largest Internet Portal Naver Plans Merger with Dunamu to Launch Won-Backed Stablecoin and Crypto Services

Naver Moves to Acquire Dunamu in Major South Korean Fintech Shake-Up

South Korea’s leading internet portal, Naver Corp., is set to confirm plans to acquire Dunamu Inc., the operator of cryptocurrency exchange Upbit, at its board meeting next week, according to industry sources.

Dunamu is scheduled to hold a board meeting on 26 November to finalise the details of the proposal.

The acquisition would see Naver expand its footprint in digital finance, leveraging Dunamu’s status as South Korea’s largest crypto exchange and the world’s fourth-largest by trading volume.

How Will the Stock Swap Work

The acquisition is expected to take the form of a comprehensive stock swap through Naver’s fintech arm, Naver Financial.

Under the proposed terms, one Dunamu share would be exchanged for three Naver Financial shares, effectively making Dunamu a wholly owned subsidiary.

The deal would position Dunamu Chairman Song Chi-hyung as the largest shareholder of Naver Financial, with Naver becoming the second-largest shareholder.

Dunamu Chairman Song Chi-hyung is the Founder and Chairman of Dunamu, the South Korean fintech company that operates the nation's largest cryptocurrency exchange, Upbit.

Naver Financial currently has a corporate value estimated between 4.7 trillion and 5 trillion won, while Dunamu’s value is estimated at 14 trillion to 15 trillion won.

Mirae Asset Group, which holds a 30% stake in Naver Financial, has reportedly agreed in principle to the merger despite viewing Naver Financial as undervalued relative to Dunamu.

The merger will require approval from two-thirds of shareholders at a special meeting and consent from at least one-third of total issued shares.

Regulatory Questions and Market Implications

The deal initially raised concerns about Korea’s “separation of finance and cryptocurrency” regulations.

Industry sources indicate, however, that regulators consider Naver Financial a big-tech fintech operator rather than a conventional financial institution, allowing the merger to move forward under existing laws.

The Fair Trade Commission is expected to review potential market dominance issues once shareholder approval is secured.

If completed, the merger could reshape South Korea’s digital finance sector.

Naver Pay’s extensive payment network would integrate with Upbit’s crypto trading and blockchain infrastructure, potentially creating a single platform spanning payments, digital asset management, investments, and crypto custody services.

The two firms are also expected to launch a won-backed stablecoin project and other digital finance initiatives, signalling ambitions to expand beyond traditional fintech.

Who Will Hold Control After the Merger

Assuming the proposed 1-to-3 exchange ratio, Dunamu Chairman Song would hold around 19% of Naver Financial shares, while Vice Chairman Kim Hyeong-nyeon would control approximately 9%.

Naver, which currently owns 70% of Naver Financial, would see its stake drop to roughly 17%, becoming the second-largest shareholder.

This structure positions Dunamu’s management as the dominant voice in the combined entity, while Naver retains a significant influence.

The Future of Digital Finance in Korea

Coinlive views the merger as a sign that the line between traditional tech platforms and cryptocurrency services is increasingly blurred in South Korea.

By integrating payments, trading, and blockchain capabilities under one roof, Naver and Dunamu are laying the foundation for a comprehensive digital finance ecosystem.

The question for investors and regulators alike is whether such consolidation will accelerate innovation or concentrate influence in the hands of a few, potentially reshaping the competitive landscape for years to come.