Naver is expected to confirm its plan to acquire Dunamu, the operator of South Korea’s largest cryptocurrency exchange, Upbit, at its board meeting scheduled for next week, industry sources said.
Naver operates South Korea’s dominant internet portal, while Upbit is the country’s number one and the world’s fourth-largest crypto exchange by trading volume.
Dunamu is also planning a board meeting on 26 November to finalise the details of the plan, according to sources familiar with the matter.
Yonhap News Agency reported that Naver is seeking a comprehensive stock swap via its fintech subsidiary, Naver Financial, to make Dunamu a wholly owned subsidiary.
The move is aimed at expanding Naver’s presence in the digital finance sector.
The two companies are expected to launch a won-backed stablecoin project alongside other digital finance initiatives, a development that could reshape South Korea’s digital finance landscape once the integration is complete.
Following confirmation of the plan at their respective board meetings next week, the companies will need shareholder approval to formally begin the integration process.
Once the acquisition is finalised, Naver Financial’s largest shareholder is likely to be Dunamu Chairman Song Chi-hyung, with Naver becoming the second-largest shareholder.
Industry sources estimate the share-swap ratio between Naver and Dunamu will likely range from 1 to 3 or 1 to 4.
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