Key Highlights
- Dunamu and Naver Financial plan IPO after share swap, with a five-year timeline and possible two-year extension if delays occur.
- Upbit and Naver Pay merger could dominate over 70% of Korea’s crypto trading and reshape payments and digital asset use.
- Regulatory approvals and recent security issues pose risks, while rivals like Kraken delay IPOs due to weak market conditions.
South Korea’s crypto and fintech is picking up pace as Dunamu—the parent company of Upbit exchange—and Naver Financial move closer to a public listing. The two companies said they plan to set up an IPO committee within a year after completing a share swap.
In an April 15 filing, the companies outlined plans to move toward listing Naver Financial on the stock market. They said the IPO would follow the completion of the transaction.
Under the deal structure, Naver will retain control through voting rights, while Naver Financial will continue to operate as its subsidiary, allowing both sides to integrate while maintaining stability.
The filing also notes that if Naver Financial is not listed within five years of completing the share swap, the timeline can be extended by up to two additional years.
Merger strategy and market impact
The deal, first announced in November 2025, is one of the largest crypto-fintech mergers in South Korea. It carries an estimated valuation of around $10 billion, with the total transaction reaching about $14.5 billion.
The plan will combine Upbit’s trading services with Naver Pay’s payment network. This could give the merged group control of more than 70% of the country’s crypto trading volume. It would also strengthen its position across both digital assets and everyday payments.
CEO Oh Kyung-seok addressed delays during a recent shareholder meeting. “We are currently in the process of approving the Fair Trade Commission’s business combination and the Financial Services Commission’s change of major shareholders,” he said, adding that regulators need more time due to the size of the deal.
Regulatory hurdles and industry contrast
The companies are still working with regulators to secure final approvals. CFO Nam Seung-hyun said completing the deal remains the main focus. He added, “We will make efforts to prepare for listing and enter the stock market immediately as soon as the deal is completed.”
However, some risks remain looming as Upbit recently suffered a $36.9 million exploit tied to Solana-based assets. The company managed to freeze part of the funds, but the rest was lost. Its management team also noted the possibility of shareholder claims linked to stock price movements.
At the same time, other exchanges are moving more cautiously. Kraken last month delayed its IPO plans due to weak market conditions. The company continues its preparations but is waiting for stronger demand and better valuations.
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