The merger between Dunamu, the business that runs Upbit, the biggest cryptocurrency exchange in South Korea, and Naver Financial, the fintech division of South Korean IT behemoth Naver, was formally announced earlier today, on November 6th.
The Financial Supervisory Service’s DART electronic disclosure system states that Naver Financial announced on Wednesday that it will incorporate Dunamu as a wholly owned subsidiary to “secure future growth momentum based on digital assets.”
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Details of the merger
The merger will occur through a stock-swap deal, as was previously announced. According to the disclosure, there are 2.5422618 shares of Naver Financial for every share of Dunamu. The stock exchange is scheduled to begin operations on June 30, 2026.
Naver Financial intends to issue 87.56 million additional shares, valued at around 15.13 trillion won ($10.28 billion), in order to effectuate this transaction. The price of a Naver Financial share was 172,780 won ($117.47).
Through the merger, Naver Financial and Dunamu want to increase their strategic and functional collaboration; however, specific corporate structure adjustments to make room for Dunamu as a new subsidiary have not yet been determined.
Although the business has not acknowledged it, local media earlier this week speculated that Upbit will pursue an IPO on the Nasdaq after the merger transaction.
The road ahead for crypto
As South Korean policymakers strive to make their nation a centre for digital finance, the merger of the two corporations reflects both Naver and Upbit’s shared goal to control the nation’s expanding digital asset and fintech scene.
One of the first and most popular search engines in South Korea served as the foundation for Naver’s internet and fintech empire when it was founded in 1999. In the third quarter, Naver recorded 3.14 trillion Korean won ($2.32 billion) in sales and 570.6 billion won ($422.67 million) in operating profit.
In the third quarter, Dunamu’s sales increased by 35% over the previous quarter to 385.9 billion won ($262.87 million), while its net profit increased by 145% to 239 billion won ($162.80 million).
Regulations about cryptocurrencies and their tax consequences are expanding globally. The South Korean National Tax Service (NTS) has issued a warning that cryptocurrency assets stored in cold wallets may be confiscated as part of its increased efforts to combat tax evasion.
The merger is an example of crypto activities growing in South Korea. It is one of the most active nations in upholding crypto regulations in favour of its development.