Upbit Operator to Announce Merger with Korean Tech Giant Naver This Week
Dunamu, the operator of Upbit, and Naver Financial plan to merge this week, creating a major entity bridging traditional finance and digital assets.Summary
South Korea's top payment platform, Naver Financial, and the largest cryptocurrency exchange operator, Dunamu (Upbit), are set to merge following board approvals expected on Wednesday and a public announcement on Thursday. The transaction involves a complete stock exchange, making Dunamu a wholly owned subsidiary of Naver Financial, with an estimated 1:3 share exchange ratio based on current valuations (KRW 5 trillion for Naver Financial and KRW 15 trillion for Dunamu).
Although Naver's ownership stake will decrease significantly (from 69% to 17%), operational control is expected to remain with Naver. To comply with fair trade laws, Dunamu may assign over half its voting rights to Naver. The strategic goal is to form a comprehensive financial ecosystem that integrates traditional payments with digital assets to compete globally.
The merger faces regulatory scrutiny from South Korea's Financial Supervisory Service and Fair Trade Commission, focusing on financial risk, governance, and market concentration concerns, as regulators traditionally separate payment platforms and virtual asset exchanges.
(Source：BeInCrypto)