SEOUL, September 25 (AJP) - South Korean internet and tech powerhouse Naver Corp. is moving to integrate the nation's leading cryptocurrency exchange, Upbit, into its ecosystem by acquiring Upbit's operator, Dunamu Inc.
The core of the proposed deal is a comprehensive stock swap between Naver's fintech subsidiary, Naver Financial, and Dunamu.
The news, which marks a major convergence between South Korea's dominant internet portal and the country's largest crypto exchange, caused Naver’s stock to soar by 9.21 percent to 249,000 won as of 1:49 p.m. on Thursday.
Naver officially acknowledged the discussions in a regulatory disclosure, stating that Naver Financial is in talks with Dunamu regarding "various collaborations, including stablecoins and unlisted stock transactions, in addition to a stock swap." However, the company noted that "nothing has been finalized regarding additional cooperation items or methods."
Naver Financial and Dunamu are reportedly preparing to approve the comprehensive stock exchange proposal at their respective board meetings as early as next month.
The proposed deal is expected to create a formidable financial technology force.
By linking Naver Financial's payment platform, Naver Pay, with Upbit's digital asset infrastructure, the combined entity aims to launch a service that seamlessly integrates simple payment, shopping, and virtual asset trading for a vast user base. This strategic integration signals Naver's ambition to create a dominant "super app" covering all aspects of e-commerce and digital finance.
The comprehensive stock swap is a corporate action where Naver Financial exchanges its newly issued stock for all outstanding shares of Dunamu, sources from Naver said. This process will position Dunamu as a wholly-owned subsidiary of Naver Financial.
Both Naver and Dunamu have reportedly established separate task forces to conduct the necessary valuations and preparations required to execute the stock exchange.
Naver currently holds approximately 75 percent of Naver Financial's shares. Key shareholders in Dunamu include its founders: Chairman Song Chi-hyung with 25.5 percent and Vice Chairman Kim Hyung-nyeon with 13.1 percent. Kakao Investment holds a 10.6 percent stake.
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