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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, September 28 – Dunamu, operator of South Korea’s largest cryptocurrency exchange Upbit, is set to become a subsidiary of Naver Financial through a comprehensive share swap. The deal is expected to mark a turning point for both companies, enabling Dunamu to move beyond its transaction fee–dependent model and positioning Naver to strengthen its foothold in digital finance.
According to industry sources, Naver Financial will issue new shares in exchange for Dunamu’s existing equity, effectively incorporating the crypto exchange into Naver Group once the process is finalized.
The strategic alignment reflects overlapping needs: Dunamu, whose 97% of revenue comes from transaction fees largely generated by Upbit, has faced regulatory hurdles that limited diversification efforts. Naver, meanwhile, is grappling with rising competition in e-commerce and shifting dynamics in search and AI, making financial services a critical growth area.
Stablecoins have emerged as the focal point of the alliance. Market observers expect that Naver’s platform ecosystem and Dunamu’s blockchain infrastructure could establish a dominant position in Korea’s stablecoin market, creating a new growth engine. The move builds on earlier cooperation, including Naver Financial’s acquisition of Dunamu’s unlisted securities trading platform “Securities Plus Unlisted.”
The deal also comes amid regulatory pressure on Dunamu. Earlier this year, the company faced a three-month business suspension order from the Financial Intelligence Unit (FIU) and is currently under review for alleged lapses in customer data management and undisclosed information handling. Partnering with Naver is seen as a way to share the burden of compliance while scaling new financial products.
“Dunamu has long sought global expansion, but repeated regulatory hurdles have stalled independent moves,” one industry official noted. “The FIU’s disciplinary action earlier this year may have accelerated the push toward partnership.”
The proposed merger is still subject to regulatory approval. However, if confirmed, analysts expect the alliance to secure a near-monopoly in stablecoin issuance and position Dunamu as a comprehensive digital financial platform. Dunamu has already unveiled its proprietary blockchain “GiwaChain,” signaling its intent to issue stablecoins in the near future.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
