South Korean internet giant Naver is acquiring Dunamu, the company behind the country’s largest cryptocurrency exchange Upbit, in a landmark $10.3 billion (15.1 trillion KRW) all-stock deal that will create a dominant force in Korea’s fast-evolving digital finance sector.

On November 26, 2025, the boards of Naver, Naver Financial, and Dunamu approved the comprehensive stock swap, which will make Dunamu a wholly-owned subsidiary of Naver Financial. Dunamu shareholders will receive 2.54 Naver Financial shares for each share they hold.

The deal brings together two powerhouses with complementary strengths. Naver Financial operates a massive payment infrastructure that serves over 34 million users and processes more than $57 billion (80 trillion KRW) in annual transactions. Dunamu, meanwhile, dominates Korea’s digital asset market through Upbit, which handles $2-4 billion in daily trading volume and ranks among the world’s leading cryptocurrency exchanges.

The transaction values Naver Financial at $3.5 billion (4.9 trillion KRW) and Dunamu at $10.8 billion (15.1 trillion KRW), yielding a corporate value ratio of 1:3.06. Due to differences in shares outstanding, the actual exchange ratio works out to 1:2.54 per share—meaning each Dunamu share (valued at roughly $314 or 439,252 KRW) will be swapped for 2.54 Naver Financial shares (valued at approximately $124 or 172,780 KRW each).

After the stock swap, Naver will retain control of Naver Financial through a creative voting rights arrangement. Though Naver’s direct stake will fall from 69% to 17%, Dunamu Chairman Chi-hyung Song and Vice Chairman Hyoung-nyon Kim have agreed to delegate their voting rights—19.5% and 10.0% respectively—to Naver. This gives Naver 46.5% total voting control while Song becomes the largest shareholder of the combined company.

Once finalized, Naver Financial will transition from a fintech subsidiary to a general business holding company, with Dunamu as its wholly-owned subsidiary. The combined group should generate around $714 million (1 trillion KRW) in annual operating profit—rivaling major Korean banks in both capital and profitability.

The strategic vision centers on building a “superapp” that fuses AI, search, digital payments, and blockchain technology. Analysts expect the merger to fast-track development of Korean won-backed stablecoins, tokenized securities, and other Web3 financial products. Combining Naver Pay’s 34 million users with Upbit’s 8 million active traders creates unprecedented scale in Korea’s digital finance market.

Markets responded enthusiastically. Naver shares jumped as much as 7.7% in after-hours trading following the announcement, adding to an earlier 11% surge when acquisition rumors first surfaced in September. Dunamu’s over-the-counter shares have climbed more than 17% in recent weeks, now trading above $286 (400,000 KRW) as investors price in the deal’s potential.

The deal faces a lengthy approval process stretching into mid-2026. Shareholder votes are scheduled for May 22, 2026, with the stock exchange set to close by June 30, pending sign-off from the Korea Fair Trade Commission and financial regulators. Dissenting Naver Financial shareholders can exercise appraisal rights at $124 (172,780 KRW) per share between May 7 and June 11, 2026.

For Dunamu, approval requires consent from major stakeholders including Chairman Song (25.53%), Vice Chairman Kim (13.11%), Kakao Investment (10.59%), Woori Technology Investment (7.2%), and Hanwha Investment & Securities (5.94%). Naver Financial’s approval is more straightforward given Naver’s 70% ownership.

The implications reach far beyond Korea. Reports suggest the merged entity may pursue a Nasdaq IPO that could unlock a valuation exceeding $35 billion (50 trillion KRW) if its stablecoin and blockchain infrastructure attract global investor interest. A U.S. listing would give Wall Street its first real access to South Korea’s cryptocurrency market—a largely independent ecosystem where more than 18 million people, over one-third of the population, actively trade digital assets.

Naver founder Hae-jin Lee and Dunamu Chairman Song will hold a rare joint press conference to outline their strategic vision—Lee’s first public appearance in nearly nine years, underscoring how seriously Naver views this transformative deal.

Beyond integrating services, the merger positions both companies to navigate Korea’s evolving regulatory landscape for digital assets. Naver Financial is already building a stablecoin wallet in partnership with blockchain providers Hashed and BDAN, piloting the technology with Busan’s “Dongbaek-jeon” regional currency, which has 1.5 million monthly users.

The deal also accelerates Naver’s global ambitions. While Naver dominates Korea across search, messaging, shopping, and payments, its international footprint remains limited. Dunamu already operates licensed exchanges in Singapore, Thailand, and Indonesia, offering ready-made expansion paths for integrated services.

Still, regulatory hurdles loom large. The Fair Trade Commission will scrutinize market concentration, while financial regulators must assess systemic risks and consumer impact—reviews that typically take a year or more. Dunamu’s recent $24.3 million (35.2 billion KRW) fine for customer identification violations highlights the compliance challenges ahead.

Security is another concern. Upbit lost roughly $48.5 million in Ethereum to hackers in November 2019, though it reimbursed all affected users. The platform has since earned ISMS and ISO 27001 certifications, demonstrating stronger security protocols.

Both companies stressed their commitment to responsible digital asset adoption. A Naver official said the integration will “create powerful synergies across AI, search, digital payments and blockchain technology” while positioning Korea “at the forefront of innovation and international expansion” in the Web3 era.

The merger marks the largest fintech consolidation in Korean history and signals a broader shift as traditional tech platforms embrace cryptocurrency services. With global finance moving toward digital assets and blockchain infrastructure, the Naver-Dunamu combination creates a formidable player capable of challenging international fintech leaders while expanding K-fintech’s global reach.