South Korea’s tech giant Naver is reportedly finalizing a comprehensive share swap deal to acquire Dunamu, the operator of crypto exchange Upbit. Under the arrangement, Dunamu would become a wholly owned subsidiary of Naver’s fintech arm. In conjunction, Naver and Dunamu plan to expand into the stablecoin space, leveraging their combined strengths in payments, exchange infrastructure, and digital finance.
What’s Going On
- Share Swap Deal & Consolidation
Reports suggest that Naver Financial and Dunamu are proceeding with a share swap, converting Dunamu shareholders into Naver Financial shareholders. This would place Dunamu under Naver’s corporate umbrella as a fully owned subsidiary.
Naver itself confirmed that discussions are underway, citing joint plans for cooperation in areas including stablecoins and unlisted share trading—but said that no final decisions have been made yet. - Stablecoin Ambitions
As part of the consolidation, Naver and Dunamu aim to accelerate work on a KRW-pegged stablecoin. Upbit and Naver Pay had already announced a joint project earlier in 2025 to develop a South Korean won stablecoin.
Dunamu has also been actively developing GIWA Chain and GIWA Wallet as components of its Web3 infrastructure push, which could serve as a backbone for stablecoin integration. - Strategic Rationale & Market Response
Naver’s share price surged after news of the takeover surfaced, rising over 7% intraday.
The consolidation is expected to create a “super app” combining Naver’s massive user base, financial services via Naver Pay, and Upbit’s crypto exchange capabilities. Analysts see this as a powerful move to dominate Korea’s digital finance ecosystem.
Why This Matters
- Vertical Integration
Owning Upbit enables Naver to unify its payments, wallet, and crypto trading services. This integration could lower costs, simplify user journeys, and boost cross-selling of financial services. - Stablecoin Leverage
With Naver’s reach and Dunamu’s technical assets, the KRW stablecoin project could rapidly scale. In Korea, stablecoins backed by trusted institutions may accelerate adoption among users wary of volatile crypto assets. - Regulatory & Market Signaling
This move signals confidence in regulatory tolerance, especially as Korea debates stablecoin regulation and digital asset policy. It may also pressure regulators to provide clearer frameworks for stablecoin issuance and crypto finance integration. - Competition & Barriers to Entry
The combined entity could erect high barriers for new entrants in Korean crypto finance by consolidating key infrastructure, user base, and capital.
Risks & Challenges
- Regulatory Hurdles
Issuing a stablecoin may trigger scrutiny from central banks, financial regulators, and anti-money laundering authorities. Balancing innovation with compliance will be critical. - Integration Complexity
Merging corporate structures, cultures, technical systems, and regulatory obligations is nontrivial, especially across the fintech and crypto domains. - Volatility & Security Risk
Crypto exchange operations face cybersecurity risks. Stablecoins require strong reserve management, audits, and transparency to maintain trust during market stress. - Execution Risk
Ambitious plans may face delays, especially if capital markets, technology, or regulatory approvals do not align quickly.
What to Watch Next
- Formal announcement details, including share swap ratios, timeline, and governance structure.
- Regulatory filings or disclosures from Naver, Dunamu, or Korean securities/finance regulators.
- Technical and policy updates regarding the KRW stablecoin initiative.
- Market behavior in Naver and Dunamu (OTC) shares.
- Competitive responses from other Korean tech/finance players like Kakao, which also explore blockchain or payments expansions.
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