Naver Acquires Dunamu: Stablecoin Integration and Super App Approach to Lead South Korea's Digital Financial Market
- Naver acquires Dunamu via equity swap to enter digital finance, merging with Upbit, South Korea's top crypto exchange. - The deal aims to launch a won-backed stablecoin and create a "super app" combining payments, e-commerce, and crypto trading. - Dunamu's 300% Q3 profit surge and 50.6% market share highlight its strategic value, though antitrust concerns and regulatory challenges persist. - Naver's move aligns with global trends of tech giants consolidating crypto infrastructure, leveraging scale to acc
Naver, South Korea’s leading internet company, is preparing to complete its takeover of Dunamu—the firm behind the nation’s top crypto exchange, Upbit—via a comprehensive share swap. This move marks a significant step in Naver’s expansion into digital finance. Pending approval at board meetings scheduled for November 26, Naver Financial, the company’s fintech arm, will merge with Dunamu. The new entity plans to introduce a stablecoin backed by the Korean won and broaden its digital financial offerings
Dunamu’s latest earnings highlight its importance in the deal. The company
This acquisition fits into Naver’s larger goal of leading South Korea’s digital finance market. By combining Upbit’s 50.6% share of the local crypto market with Naver’s extensive user network and services, the merged company aims to build a “super app” that integrates payments, online shopping, and cryptocurrency trading.
Regulatory approval remains a significant challenge. While regulators have stated the merger does not breach laws separating finance from virtual assets, concerns about market competition remain.
The transaction also faces pressure from competitors. Bithumb, Upbit’s main rival,
Dunamu is also dealing with regulatory disputes. The company is appealing a three-month suspension imposed by South Korea’s Financial Intelligence Unit, which accused Upbit of failing to properly vet customers. Dunamu maintains the penalty is excessive and could disrupt its business, even as it insists on its compliance efforts
This acquisition is part of a wider global pattern where tech and fintech leaders are consolidating crypto infrastructure. Naver’s strategy echoes PayPal’s
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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