Key Highlights
- Naver Corp. agreed to acquire Dunamu Inc., the operator of Upbit, in an all-stock deal valued at $10.3 billion.
- Upbit controls over 80% of South Korea’s crypto market, with 18M active users and high daily trading volumes.
- Naver Financial may issue its own won-backed stablecoin in the future, pending regulatory approval.
Naver Corp., one of South Korea’s largest internet companies, has agreed to acquire Dunamu Inc., the operator of Upbit, the country’s biggest cryptocurrency exchange, in an all-stock transaction valued at about $10.3 billion.
According to the Bloomberg report, under the terms of the deal, Naver Financial, Naver’s fintech division, will issue 2.54 shares for every Dunamu share.
The share exchange ratio was based on multiple independent valuations, which placed Naver Financial at 4.9 trillion won and Dunamu at 15.1 trillion won. Once completed, Dunamu will become a fully owned subsidiary of Naver Financial.
Upbit is by far the leading player in South Korea’s crypto market, accounting for more than 80% of local trading. This is a country with more than 18 million South Koreans active in digital asset trading, with day-to-day volumes on the exchange sometimes topping the turnover of the nation’s stock market. Revenue for Dunamu in the first nine months of 2025 rose 22% to 1.19 trillion won, almost entirely from trading fees.
Impact on Naver Financial
The acquisition also reshaped Naver Financial. The fintech arm, which had mainly handled payments, could start issuing money in the future, including its own won-based stablecoin. However, Naver would first need regulatory approval under South Korea’s legal framework.
The country prepared its first legal framework for stablecoins under the second stage of the Virtual Asset User Protection Act. In October, the Financial Services Commission submitted a government bill to the National Assembly, setting rules on issuance, collateral management, and internal controls for firms handling won-backed stablecoins.
After the share exchange, Naver’s stake in its fintech arm will fall from 70% to 17%, while Dunamu’s chairman, Song Chi-hyung, will technically hold the largest stake. Voting rights, however, will largely remain with Naver, allowing it to maintain control.
Regulatory changes
The crypto exchange market in South Korea has been beset with several regulatory changes. In August, the country’s Financial Services Commission instructed local cryptocurrency exchanges, including Upbit and Bithumb, to temporarily suspend their lending services due to legal uncertainties and investor risk.
However, in September, the government permitted cryptocurrency firms to qualify as venture companies and thus access tax incentives and financial support that had not previously been available to them.
The deal will see Naver integrate Upbit into its fintech ecosystem, marking a key milestone in the convergence of traditional internet companies and digital finance in South Korea.
Also Read: Korea FIU Set to Impose Heavy Penalties on Crypto Exchanges
