SEOUL, November 20 (AJP) - Naver’s planned merger with Dunamu, the operator of cryptocurrency exchange Upbit, is gaining traction amid a shifting regulatory climate — potentially clearing the way for one of the most significant tie-ups in Korea’s fintech history.
According to industry officials, Naver Financial and Dunamu will convene board meetings on Nov. 26 to approve a proposed stock swap that would effectively combine the two companies under a single corporate structure. Once the boards sign off, the merger will be finalized at an upcoming shareholders’ meeting.
Under the proposed terms, one Dunamu share would be exchanged for three Naver Financial shares, making Dunamu a wholly owned subsidiary of Naver Financial. Naver would serve as the new parent company. Dunamu Chairman Song Chi-hyung is expected to emerge as the largest shareholder of the combined entity, with Naver becoming the second-largest.
The merger is designed to leverage Naver’s vast platform ecosystem and Song’s leadership in digital finance to drive global fintech expansion, signaling Dunamu’s growing weight in Naver’s long-term financial strategy.
The deal initially raised questions over whether it would violate Korea’s “separation of finance and cryptocurrency” principle. However, regulators are reportedly inclined to view Naver Financial as a big-tech fintech operator rather than a conventional financial institution, a distinction that could allow the merger to proceed.
The government’s broader shift toward easing cryptocurrency regulations to strengthen global fintech competitiveness is also seen as supporting the transaction.
If completed, the merger could produce one of South Korea’s most comprehensive digital finance platforms by integrating Naver Pay’s large-scale payment network with Upbit’s cryptocurrency trading services and blockchain capabilities. The combined entity would span payments, investments, digital asset management, and crypto custody services.
Naver’s ambitions in stablecoin issuance and unlisted stock trading — recently signaled through regulatory filings — could also accelerate through Dunamu’s blockchain expertise and Naver’s global footprint, including platforms such as Line.
Significant hurdles remain.
The merger must secure approval from two-thirds of shareholders and pass scrutiny from the Fair Trade Commission, which is expected to examine potential market dominance issues.
* This article, published by Economic Daily, was translated by AI and edited by AJP.
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