TL;DR
- Naver Financial is in talks to acquire Dunamu, Upbit’s operator, in a KRW 20T stock-swap merger deal.
- The merger would combine Naver’s fintech services with Korea’s largest crypto exchange, creating the first real challenger to Kakao.
- Strong Upbit profits and Dunamu’s scale support the deal, which could also revive Dunamu’s Nasdaq ambitions.
Naver Financial is in advanced discussions to acquire Dunamu, the operator of Korea’s largest cryptocurrency exchange Upbit. The potential stock-swap deal is estimated at around KRW 20 trillion. If finalized, the transaction would merge Naver’s payments and digital-banking ecosystem with the country’s dominant crypto-trading platform, creating one of the most influential fintech conglomerates in South Korea.
Reports from Korean and industry media describe the Naver–Dunamu merger as a potential turning point in the country’s financial technology sector. Naver is seeking a stronger role in digital finance to compete more directly with Kakao. At the same time, Dunamu would gain the institutional scale and governance advantages of a major technology parent company.
Inside the Proposed KRW 20T Stock-Swap Deal
Sources indicate the negotiations center on a stock-swap structure rather than a cash acquisition. That would allow Naver Financial to integrate Dunamu without immediate liquidity pressure. The talks remain ongoing, but several outlets report that Naver’s board has already scheduled internal reviews of the proposed acquisition.
For Naver, the deal would deepen its foothold in payments, wealth, and digital financial services. For Upbit operator Dunamu, the merger offers an opportunity to operate within a larger corporate framework. This isn’t a minor factor as competition intensifies across the Korean fintech market and as regulatory expectations rise.
A Merger That Could Reshape Korea’s Fintech Market
If completed, the merger would link Naver’s fintech businesses with Upbit’s dominant role in the local crypto market. Analysts say such a merger could significantly strengthen Korea’s position as a regional fintech hub and accelerate consolidation in a market increasingly defined by super-apps and integrated financial ecosystems.
Contextualizing Kakao’s Role
The potential merger also shifts the competitive balance with Kakao, which currently leads Korea’s consumer fintech market through KakaoPay and the fully digital Kakao Bank. Kakao’s dominance in everyday payments and mobile banking has long positioned it as the country’s default financial super-app. A merged Naver–Dunamu company would become the first rival with comparable reach. The combination brings together Naver’s payments network and Dunamu’s digital-asset operations, positioning the group to compete more directly with Kakao.
If completed, the Naver Dunamu merger would mark one of the most significant restructurings in Korea’s fintech market.
Upbit’s Strong Fundamentals Add Momentum
Dunamu’s financial performance has reinforced the strategic logic behind the merger. The company posted $165 million in Q3 profit, marking 300% year-over-year growth. Upbit remains the dominant exchange in Korea by trading volume and user activity. Dunamu maintains a strong revenue base as the industry prepares for more stringent licensing under the country’s emerging regulatory framework.
These fundamentals make the acquisition more attractive for Naver and help sustain market confidence as negotiations progress.
How the Deal Reopens Dunamu’s Long-Stalled Nasdaq Ambitions
A secondary implication of the merger is the renewed attention on Dunamu’s previously paused plans for a U.S. listing. The company explored a Nasdaq IPO in 2021–2022 before shelving the effort amid regulatory uncertainty and market volatility.
Analysts say a successful integration with Naver Financial would improve governance, transparency, and corporate structure. Such conditions typically strengthen the outlook for companies considering an overseas IPO. While not the central focus of the merger, the transaction could make an eventual Upbit Nasdaq listing technically and reputationally more attainable.
>>> Read more: South Korea Crypto Tax Crackdown Targets Cold Wallets
What Comes Next
Naver’s board is expected to continue evaluating the acquisition in the near term. Any final agreement would require regulatory review in Korea, particularly given Upbit’s dominant position in the domestic crypto market. Pending approval, the merger could reshape competitive dynamics across banking, payments, and digital asset services.
If completed, the Naver Financial acquisition of Dunamu would mark one of Korea’s largest fintech deals to date. It seems to usher in a decisive shift toward integrated, large-scale financial platforms capable of competing on both domestic and global stages.
