Naver to Finalize Upbit Operator Dunamu Acquisition Plan

South Korea’s leading tech conglomerate, Naver, is set to confirm its plan to buy Dunamu, operator of the country’s largest cryptocurrency exchange, Upbit. According to the announcement, the confirmation will happen at a board meeting next week.

According to sources familiar with the matter, Dunamu will also hold a board meeting on November 26 to finalize the details of the acquisition. If it is completed, this deal would be one of the biggest moves in Korea’s digital finance sector.

Naver Expanding Into Digital Finance

Naver plans to use a stock swap to make Dunamu a wholly owned subsidiary. This approach will be led by its fintech arm, Naver Financial. The goal is to strengthen Naver’s presence in digital finance, blockchain technology, and new payment systems. Furthermore, this move aligns with Naver’s aim to compete more in the fast-growing financial technology sector.

It is also worth noting that both parties plan to work on a Korean won-backed stablecoin project. They will also introduce new digital finance initiatives. This stablecoin could improve domestic digital payments, cross-border transactions, and decentralized finance (DeFi) services. Undoubtedly, the partnership will help both companies build a strong digital finance system in South Korea.

Meanwhile, the acquisition plan needs approval from shareholders, which will kick off the integration process. Once the acquisition is finalized, Dunamu Chairman Song Chi-hyung will become the largest shareholder of Naver Financial. Likewise, Naver will be the second-largest shareholder. Analysts expect the share swap ratio between Naver and Dunamu to be around 1:3 or 1:4. 

Market Reaction and Industry Impact

Recall that the fondly called “Google of South Korea,” previously announced its plan in September. Interestingly, this strategy aligns with broader developments in South Korea’s financial sector.

Notably, news of the potential acquisition sent Naver’s stock surging over 11%. The company also reported over $2 billion in revenue and $355 million in net profit for the second quarter of 2025.

Meanwhile, Upbit is a dominant force in South Korea’s crypto market. Data from CoinMarketCap shows it as the country’s largest exchange and the fourth largest globally, posting about $2.9 billion in 24-hour spot trading volume. No doubt, this timing is favorable. This is because the country’s crypto industry has expanded under President Lee Jae-myung.

Upbit Owner Fights South Korean Regulators

According to reports, Dunamu is locked in a legal battle with the country’s Financial Intelligence Unit (FIU). The conflict follows a business suspension order issued during South Korea’s ongoing crackdown on crypto-related offenses.

Previously, the agency accused Upbit of failing to perform proper customer due diligence in hundreds of thousands of cases. This led to a three-month restriction on new customer transactions from March 7 to June 6. 

In response, Dunamu argues differently. In their defense, they articulated that the punishment is excessive and could harm their operations. Importantly, the firm affirmed it had followed compliance measures to address regulatory concerns. They argued vigorously that the FIU imposed sanctions without fully considering key facts, making the decision unfair.

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