South Korea’s tech giant Naver is making a bold move into the crypto space. The company is planning a comprehensive share exchange with Dunamu, the operator of Upbit, effectively turning the nation’s largest digital asset exchange into a wholly owned Naver subsidiary.
This deal could integrate Upbit directly into Naver’s growing financial services ecosystem, signaling a major expansion into digital finance.
Both Naver and Dunamu have set up dedicated task forces to finalize the share swap, under which Naver Financial will issue new shares in exchange for existing Dunamu stakeholder positions. But this isn’t just an acquisition, it’s a strategic leap.
Industry sources hint at plans for a Korean won-backed Bitcoin stablecoin and expanded overseas operations once the transaction closes.
Founded in 1999, Naver dominates South Korea’s search engine market and has grown into one of the country’s largest corporations. Its subsidiary, Naver Financial, already offers a wide range of services including mobile payments via Naver Pay, lending, insurance, and investment products.
Adding Upbit to the mix positions Naver to create a comprehensive digital finance powerhouse.
Upbit is no small player. It’s South Korea’s largest cryptocurrency exchange, handling around $2.9 billion in daily spot trading volume and boasting the country’s biggest crypto user base. The acquisition would give Naver direct access to Upbit’s infrastructure, enabling seamless integration into its financial platform.
Timing matters. Recent regulatory developments in South Korea appear to be shaping this move. The ruling Democratic Party set up a digital asset task force targeting the passage of won-backed stablecoin legislation by year-end, creating opportunities for integrated financial service providers like Naver.
The market has responded enthusiastically. Naver’s stock jumped 11.4% to 254,000 Korean won after reports of the acquisition surfaced. The company reported over $2 billion in revenue and $355 million in net profit in Q2, demonstrating the financial muscle to pull off this ambitious expansion.
With Upbit under its wing, Naver is positioning itself at the center of South Korea’s crypto and digital finance evolution, combining regulatory compliance, cutting-edge infrastructure, and consumer reach in a move that could reshape the local market.
