Naver's Cryptocurrency Merger Approaches Completion Despite Regulatory Hurdles and Valuation Issues

Bitget-RWA2025/11/20 12:26

By:Bitget-RWA

- Naver Financial acquires Dunamu via equity swap, making Upbit a wholly owned subsidiary to expand digital finance and crypto markets. - Dunamu's chairman becomes largest shareholder (28%), while Naver's stake dilutes to 17%, raising valuation and governance concerns. - Regulatory scrutiny focuses on antitrust risks as Upbit holds 50.6% market share, amid intensified competition from Bithumb and U.S. crypto firms. - Naver plans a won-backed stablecoin integrated into Naver Pay and explores Saudi partnersh

Naver Corp. is on track to complete its takeover of Dunamu Inc., the company behind South Korea’s leading cryptocurrency exchange Upbit,

as reported by industry insiders

during board meetings set for November 26. This acquisition, carried out via Naver’s fintech arm Naver Financial, will use a full equity swap to turn Dunamu into a wholly owned subsidiary,

marking a significant move into digital finance

and the cryptocurrency sector. The merger is anticipated to bring about the introduction of a stablecoin backed by the South Korean won, along with other digital financial products,

which could transform the nation’s financial sector

The structure of the equity swap has sparked discussion regarding its effects on shareholder control. Dunamu’s Chairman, Song Chi-hyung, is expected to emerge as the top shareholder in the new company, holding a 28% stake,

while Naver’s share will decrease

to 17%. Analysts in the industry estimate the share exchange ratio to be between 1:3 and 1:4,

putting Dunamu’s valuation near 15 trillion won

and Naver Financial’s at 5 trillion won. Nevertheless, Mirae Asset Securities, which owns 30% of Naver Financial, has raised questions about the valuation,

pointing out that Kakao Pay’s market value

of 7 trillion won suggests the estimate is “on the conservative side.”

Naver's Cryptocurrency Merger Approaches Completion Despite Regulatory Hurdles and Valuation Issues image 0

Regulatory approval remains a possible challenge. Although regulators have stated the merger complies with rules separating digital assets from conventional finance,

concerns about market competition persist

, particularly since Upbit held a 50.6% market share in Q3 2025. The deal also comes amid changing market conditions,

as Bithumb’s domestic market share climbed

to 46% and collaborations with U.S. crypto firms have heightened rivalry.

Naver’s growth strategy reaches beyond its home country.

In the days leading up to the board decision

, Naver Chairman Lee Hae-jin met with Saudi Minister Majed Al-Hogail to talk about stablecoin initiatives and AI data centers, aligning with the objectives of Saudi Vision 2030.

This partnership could utilize

Saudi Arabia’s real estate through security token offerings or stablecoins backed by tangible assets, positioning the kingdom as a major ally in Naver’s international fintech plans.

If the acquisition is approved, it would combine Naver Financial’s annual payment transactions of 80 trillion won ($58 billion) with Upbit’s worldwide trading activity,

forming a powerful alliance between technology and crypto

. The merged company intends to roll out a stablecoin within Naver Pay, with ambitions to expand globally

and potentially redefine financial landscapes

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Naver's Cryptocurrency Merger Approaches Completion Despite Regulatory Hurdles and Valuation Issues

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