South Korea’s top payments platform and largest cryptocurrency exchange are set to merge, with board approval expected on Wednesday and a public announcement planned for the following day.
This agreement will combine Naver Financial and Dunamu, the operator of Upbit, to form a powerful player bridging traditional financial and digital assets in one of Asia’s largest economies.
Timeline and structure of the merger
The boards of both companies plan to meet on November 26 to approve the merger. A joint announcement is then expected on November 27. According to local media reports, top executives will attend a press conference at the Naver campus.
The transaction will involve a wholly owned exchange, making Dunamu a wholly owned subsidiary of Naver Financial. Current estimates value Naver Financial at around KRW5 trillion and Dunamu at KRW15 trillion. This difference indicates a share exchange ratio of 1:3.
Dunamu shareholders will exchange their shares for shares in Naver Financial, with major shareholders likely to acquire almost 30% of the combined company. At the same time, Naver’s stake will decrease from 69% to 17%, but operational control is expected to remain with Naver, one of South Korea’s largest technology giants.
To comply with the country’s fair trade laws, Dunamu may transfer more than half of his voting power to Naver. This move is intended to address concerns about market concentration while preserving the strategic benefits of the deal.
Strategic outlook for the combined entity
This merger unites two complementary leaders in South Korea’s financial sector. Naver Financial operates the country’s most popular payments platform, with strong ties to Naver’s e-commerce, search and communications services. Dunamu dominates cryptocurrency trading through Upbit, handling billions in daily trading volume and serving millions of users.
The combined company aims to create a comprehensive financial ecosystem that removes the boundaries between traditional payments and digital assets. Their leaders expect to emphasize plans to compete with global tech giants. This strategy highlights the need for Korean fintech companies to scale and remain competitive beyond their home market.
Naver’s large user base and strong technology platform could accelerate crypto adoption among mainstream consumers. In return, Dunamu’s blockchain experience and regulatory knowledge can expand Naver Financial’s lead in new financial technologies.
Regulatory review and future impact
The proposed merger is supervised by regulators. South Korea’s Financial Supervisory Service and the Fair Trade Commission are both required to review the deal. The FSS will assess the financial risk, in particular the impact of combining a licensed payment platform with a virtual asset exchange. Regulators have long separated these sectors to prevent systemic risks.
Shareholder protection is another primary concern. Now that Naver’s stake has fallen below 20%, questions arise about governance and minority rights. Regulators will likely examine whether the agreement protects existing investors in both companies.
Competition authorities face a complex decision. While executives argue the merger is necessary to compete globally, the Fair Trade Commission must determine whether it is unfairly concentrating control of South Korea’s payments network and largest cryptocurrency exchange. The evaluation will focus on possible effects on market competition and consumer choice.
Approval will take months. Both companies must demonstrate that the benefits of the merger outweigh any risks to financial stability or fair competition. The decision could set a precedent for how traditional financial and digital assets could merge in South Korea and across Asia in the future.
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