Naver Sets Sights on Crypto Dominance with Upbit Acquisition Deal

• Naver Financial to acquire Dunamu, operator of Upbit, via share swap deal.

• Acquisition aligns with Naver’s stablecoin and digital finance expansion strategy.

The tech industry in South Korea is experiencing a significant merger with Naver Financial on the verge of acquiring cryptocurrency exchange operator Dunamu. The relocation puts the internet giant in a position to take advantage of the booming market of digital assets in the country by strategically expanding into the country.

Strategic Acquisition Fuels Digital Finance Ambitions

Naver financial, the financial technology arm of the largest search engine corporation in South Korea, is proceeding with a plan to acquire Dunamu under a subsidiary arrangement. The takeover will be through share swap, and board approvals will be made soon as per the local media reports.

This deal gives Naver ownership over Upbit, the largest cryptocurrency exchange in South Korea with the biggest market share in the country. The exchange is ranked fourth in the world with an estimated daily spot trading volume of about $2.9 billion, only surpassed by international giants such as Binance.

The takeover is consistent with Naver overall digital finance strategy, especially the plans to roll out a Korean won-pegged stablecoin initiative after the deal is finalized. This project is in parallel with eight large domestic banks planning their own stablecoin release by the end of 2025 or early 2026.

The reaction in the market has been very positive and Naver stock price has rocketed more than 11% to 254,000 Korean won after acquiring news. The company has a high financial ability to make this strategic investment since it has been making more than $2 billion in quarterly revenue.

The cryptocurrency ecosystem in South Korea has been growing at an impressive rate with registered exchange users of over 16 million individuals in February alone. This number is estimated by industry analysts to hit 20 million users by the end of the year, which is almost 40% of the population in the country.

The positive regulatory climate during the tenure of President Lee Jae-myung has enhanced the adoption of crypto by enabling legislation, such as bills that legalize the use of stablecoins. This regulatory transparency gives necessary ground to the expansion plans of Naver.

Naver has already ventured into cryptocurrency markets with its collaboration with Chiliz blockchain, releasing Naver Pay Wallet in August 2024. The Upbit takeover is a much more ambitious digital asset infrastructure play.

It is estimated that the cryptocurrency market revenue of South Korea will be $1.1 billion in 2025 and $1.3 billion in 2026. This upward trend justifies why Naver chose to invest in the key crypto sector at the right time with the Dunamu acquisition.

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