Deal marks Korea’s biggest fintech consolidation, expanding Naver’s reach into crypto, trading, tokenized finance
South Korea’s leading internet platform Naver and crypto exchange operator Dunamu are moving toward a landmark merger that would create a 20 trillion won ($13.7 billion) fintech giant combining payments, digital assets and artificial intelligence-driven financial services.
Naver said Wednesday that the boards of the company and its financial arm, Naver Financial, have approved a comprehensive share swap that will make Dunamu a wholly owned subsidiary. Under the deal, one Dunamu share will be exchanged for 2.54 shares of Naver Financial, the company added.
The merger brings together Naver Financial, valued at roughly 5 trillion won, and Dunamu, worth about 15 trillion won. The shareholders meeting is scheduled for May 22 with the share-swap deal set to take effect on June 30.
A Naver official said the integration of Dunamu into the firm will allow the two companies to combine their strengths in AI, search technology, digital payments and blockchain.
“Amid the transition toward a Web3 environment, this synergy will serve as a driving force for our global expansion,” the official said. “We aim not only to broaden the technological foundation of the digital asset market, foster talent and enhance public acceptance of digital assets, but also to take on a responsible role in the ecosystem and showcase the potential of K-fintech on the global stage.”
Once completed, the deal would make Dunamu Chair Song Chi-hyung the largest shareholder of Naver Financial, positioning the merged entity as one of the most influential players in Korea’s quickly evolving financial tech and digital asset market.
Shareholder approval is expected for Naver Financial, of which Naver owns 70 percent, but Dunamu must secure backing from major shareholders including Song (25.53 percent), Vice Chair Kim Hyoung-nyon (13.11 percent), Kakao Investment (10.59 percent), Woori Technology Investment (7.2 percent) and Hanwha Investment & Securities (5.94 percent).
Market watchers say the merger would create a next-generation “superapp” platform integrating Naver Pay’s payment, points, lending and insurance services with Dunamu’s Upbit exchange and Securities Plus trading app. The combined business would have the scale to push into Korean-won stablecoins, tokenized securities and Web3 financial products.
With Dunamu generating around 1 trillion won in annual operating profit, the merged group would instantly become one of Korea’s most profitable fintech players — rivaling banks and big tech-led financial services in user reach and capital strength.
Still, the deal faces regulatory hurdles.
The Fair Trade Commission and financial regulators will review the merger for market dominance, consumer impact and systemic risks, a process likely to take a year or more. The industry is also watching whether the deal accelerates a loosening of the “financial-virtual asset separation” guideline that has long restricted partnerships between traditional finance and crypto businesses.
Financial regulators have recently signaled flexibility. “We will broadly review whether easing this regulation aligns with global trends,” said Kim Sung-jin, head of the Financial Supervisory Service’s virtual asset division.
Competition authorities will examine whether the merger could concentrate too much power in a single platform. FTC mergers and acquisitions bureau chief Lee Byung-geon said regulators will assess both horizontal and vertical effects, adding that they will coordinate with financial authorities to evaluate broader implications.
yeeun@heraldcorp.com