South Korea's internet giant Naver has announced plans to acquire Dunamu, the company behind the country's largest cryptocurrency exchange Upbit, in a massive $10.3 billion all-stock deal.
This merger would create one of Asia’s biggest digital finance companies and marks a major shift in how traditional tech firms approach cryptocurrency.
The deal brings together two powerhouse companies: Naver, often called “South Korea’s Google,” and Dunamu, which operates Upbit – the exchange that handles over 80% of all crypto trading in South Korea. If approved, this acquisition could reshape the country’s entire digital finance landscape.
Deal Structure and Timeline
Naver Financial, the company’s fintech division, will issue 87.56 million new shares to Dunamu shareholders through a stock-swap arrangement. The exchange ratio has been set at approximately 2.54 Naver Financial shares for every Dunamu share, based on an independent cash-flow analysis.
The merger process has a clear timeline ahead. Shareholders will vote on the deal at general meetings scheduled for May 22, 2026. If approved, the final stock exchange will take place on June 30, 2026.
However, the deal still needs approval from multiple government agencies. South Korea’s Fair Trade Commission must review the merger for competition issues, while financial regulators will examine changes in major shareholder status under credit information laws.
Shareholders who oppose the merger can exercise appraisal rights at 117,780 won per Naver Financial share between May 22 and June 11, 2026. The deal could be canceled if appraisal demands exceed 1.1 trillion won combined, unless both companies agree to adjust this limit.
Dunamu’s Strong Financial Performance
Dunamu’s recent financial results show why Naver wants to acquire the company. The crypto exchange operator reported remarkable growth in 2025, with third-quarter net income reaching $165 million – a 300% increase from the same period last year.
The company’s consolidated revenue climbed 35% quarter-over-quarter to $266 million, while operating profit rose 54% to $162 million. These strong numbers reflect increased trading activity as global crypto markets recovered throughout 2024 and 2025.
Dunamu’s annual performance has been equally impressive. In 2024, the company generated 1.73 trillion won in consolidated revenue, representing a 70.5% increase from the previous year. Operating profit jumped 85% to 1.19 trillion won ($811 million).
Currently, Dunamu holds 10.4 trillion won in total assets and 4 trillion won in equity, cementing its position as one of Korea’s most valuable digital asset companies.
Market Dominance and Strategic Value
Upbit’s market position makes this acquisition particularly significant. The exchange commands over 80% of South Korea’s cryptocurrency trading market and ranks as the world’s fourth-largest exchange by trading volume, with more than $2 billion in daily transactions.
South Korea has one of the world’s most active crypto trading populations, with approximately 18 million people trading digital assets. Trading volumes sometimes exceed those of the country’s stock market, highlighting the importance of the crypto sector.
Naver brings its own massive user base to the deal. The company’s Naver Pay platform processes around 80 trillion won ($58 billion) in annual transaction volume, giving the combined entity enormous reach across South Korea’s digital economy.
Stablecoin Plans and Digital Finance Vision
One of the most significant aspects of this merger involves plans for a Korean won-backed stablecoin. Industry reports suggest Naver Financial has been preparing to launch this digital currency project following the acquisition, though no official timeline has been announced.
This stablecoin initiative aligns with broader changes in South Korea’s crypto regulatory environment. In June, eight major South Korean banks announced plans to launch won-pegged stablecoins by late 2025 or early 2026. These developments followed the election of President Lee Jae-myung, whose administration has adopted a more supportive stance toward digital assets.
The merger aims to create what analysts call a “super app” that integrates cryptocurrency trading with everyday financial services. This would combine Upbit’s trading capabilities with Naver’s existing ecosystem of search, messaging, shopping, and digital payments.
Naver Financial has also been developing stablecoin wallet services for regional currency projects, indicating the company’s commitment to digital currency innovation.
Regulatory Environment and Challenges
While the merger operates in an increasingly favorable regulatory environment, Dunamu faces some compliance challenges. South Korea’s Financial Intelligence Unit recently imposed a 35.2 billion won fine on the company for customer identification violations, along with a three-month business suspension on certain operations.
Despite these regulatory hurdles, the overall environment for cryptocurrency in South Korea has improved significantly. The government’s more supportive stance toward digital assets, combined with major banks entering the stablecoin market, creates favorable conditions for the merged company.
The Fair Trade Commission and other regulators will closely examine this merger due to concerns about market concentration. However, bringing Upbit under Naver’s umbrella – a company with established government relationships – may actually ease some regulatory pressure.
The Digital Finance Revolution
This $10.3 billion deal represents more than just a corporate acquisition – it signals a fundamental shift in how technology companies approach financial services. By combining Naver’s massive user base with Upbit’s crypto expertise, the merged entity could accelerate cryptocurrency adoption across South Korea’s mainstream population.
The timing appears strategic, as global cryptocurrency markets show renewed strength and institutional interest grows. With proper regulatory approval and successful integration, this merger could create a template for how traditional tech giants can successfully enter the digital asset space while maintaining regulatory compliance.
