Dunamu and Naver Financial Announce Merger to Forge South Korean Fintech Giant

South Korea's leading cryptocurrency exchange operator, Dunamu, and Naver Financial, the financial arm of tech giant Naver, are set to merge in a landmark deal that bridges traditional finance and digital assets. The boards of both companies plan to meet on November 26 to approve the merger, with a public announcement scheduled for November 27 at Naver's '1784' campus, attended by top executives including Naver Chairman Lee Hae-jin and Dunamu Chairman Song Chi-hyung.

The transaction involves a complete stock exchange, valuing Naver Financial at approximately KRW 5 trillion and Dunamu at KRW 15 trillion, suggesting a 1:3 share exchange ratio. Dunamu will become a wholly owned subsidiary of Naver Financial, with its shareholders taking nearly 30% of the combined entity, while Naver's stake drops from 69% to 17%. Operational control is expected to remain with Naver, and Dunamu may assign over half of its voting rights to Naver to comply with fair trade laws.

This merger unites Naver Financial's dominant payment platform, integrated with e-commerce and communication services, with Dunamu's Upbit, South Korea's largest crypto exchange processing billions in daily volume. The combined entity aims to create a comprehensive financial ecosystem, enhancing technology integration, regulatory positioning, and competitive edge in Asian markets. However, the deal faces scrutiny from regulators, including the Financial Supervisory Service and Fair Trade Commission, who will assess financial risks, shareholder protection, and market concentration concerns, with approval expected to take months.