South Korea’s top payment platform and largest cryptocurrency exchange are set to merge, with board approvals expected on Wednesday and a public announcement planned for the next day.
This agreement will combine Naver Financial and Dunamu, the operator of Upbit, to form a powerful player that bridges traditional finance and digital assets in one of Asia’s largest economies.
Merger Timeline and Structure
The boards of both companies plan to meet on November 26 to approve the merger. After that, a joint announcement is expected on November 27. According to local media reports, top executives will attend a press conference at Naver’s campus.
The transaction will involve a complete stock exchange, making Dunamu a wholly owned subsidiary of Naver Financial. Current estimates value Naver Financial at about KRW 5 trillion and Dunamu at KRW 15 trillion. This difference suggests a 1:3 share exchange ratio.
Dunamu’s shareholders will exchange their stakes for shares in Naver Financial, and its principal holders are likely to take nearly 30% of the combined company. At the same time, Naver’s stake will decline from 69% to 17%, but operational control is expected to stay with Naver, one of South Korea’s top tech giants.
To comply with the country’s fair trade laws, Dunamu may assign over half of its voting rights to Naver. This step intends to address market concentration concerns while preserving the strategic advantages of the deal.
Strategic Outlook for the Combined Entity
This merger unites two complementary leaders in South Korea’s financial sector. Naver Financial runs the country’s most popular payment platform with strong ties to Naver’s e-commerce, search, and communication services. Dunamu dominates cryptocurrency trading through Upbit, processing billions in daily trading volume and serving millions of users.
The combined company seeks to create a comprehensive financial ecosystem that erases boundaries between traditional payments and digital assets. Their leaders expect to stress plans to compete with global tech giants. This strategy highlights the need for Korean fintech firms to scale and remain competitive beyond their home market.
Naver’s large user base and strong technology platform could accelerate the adoption of crypto among mainstream consumers. In return, Dunamu’s blockchain experience and regulatory know-how may boost Naver Financial’s edge in new financial technologies.
Regulatory Review and Future Impact
The proposed merger is under scrutiny by regulators. South Korea’s Financial Supervisory Service and Fair Trade Commission must both review the deal. The FSS will assess financial risk, especially the impact of combining a licensed payment platform with a virtual asset exchange. Regulators have long separated these sectors to prevent systemic risk.
Shareholder protection is another primary concern. With Naver’s stake falling below 20%, questions arise about governance and minority rights. Regulators will likely examine whether the agreement protects existing investors in both firms.
Competition authorities face a complex decision. While executives claim the merger is needed to compete globally, the Fair Trade Commission must determine whether it unfairly concentrates control over South Korea’s payment network and its largest cryptocurrency exchange. The review will focus on possible effects on market competition and consumer choice.
Approval will take months. Both companies must show that the merger’s benefits outweigh any risks to financial stability or fair competition. The decision could set a precedent for how traditional finance and digital assets may merge in South Korea and across Asia in the future.
