Naver Set to Acquire Upbit Crypto Exchange in Strategic Fintech Merger

South Korean internet giant Naver is reportedly in the final stages of acquiring Dunamu, the operator of Upbit, the country’s largest cryptocurrency exchange. According to multiple local media outlets, including Donga Ilbo, Naver Financial (the fintech arm of Naver) plans to absorb Dunamu through a comprehensive stock swap, making it a wholly owned subsidiary.

A digital finance powerhouse in the making?

Under the proposed structure, Naver would become the ultimate parent company, with Dunamu positioned as a grandchild subsidiary under Naver Financial. This arrangement aims to consolidate Naver’s fintech dominance by integrating its payment platform Naver Pay with Upbit’s virtual asset infrastructure.

Naver: 39 million users
UpBit: 9 million registered users

Naver consolidating UpBit into a single South Korean “Super App” is bullish for your magic internet money. https://t.co/MjX5Khmqq8

— s4mmy (@S4mmyEth) September 25, 2025

Both companies have already formed task forces to finalize the details of the share exchange, which involves Naver Financial issuing new shares to current Dunamu shareholders in return for their equity stakes. Dunamu’s co-founders, Chairman Song Chi-hyung and Vice Chairman Kim Hyung-nyeon, currently hold a combined 38.6% stake.

While the merger is not a traditional absorption-style deal, it will result in full control of Dunamu by Naver Financial while maintaining the legal identities of both firms.

Strategic play amid stablecoin legislation

The potential acquisition aligns closely with South Korea’s ongoing push to establish a framework for Korean won-pegged stablecoins. Earlier this year, Naver and Dunamu announced plans to develop such a stablecoin, combining Naver Pay’s payment capabilities with Upbit’s blockchain expertise. According to Mirae Asset Securities, the project could generate as much as 300 billion Korean won (approximately $220 million) annually by 2030.

Upbit is the dominant cryptocurrency exchange in the South Korean market. Source: Kaiko & Presto Research

The move is seen as a preemptive strategy to capitalize on emerging crypto regulations, especially after the Democratic Party of Korea recently established a digital asset task force aimed at passing won-backed stablecoin legislation by the end of the year.

The merger could also signal Naver’s ambitions to compete globally with fintech giants like PayPal, Stripe, and Coinbase. While both Naver Pay and Upbit have largely focused on the domestic market, the combined infrastructure and Naver’s existing reach in Japan and Southeast Asia could support international expansion.

In addition to crypto and payments, the deal could facilitate broader investments in AI and digital finance. Dunamu, which has consistently posted annual operating profits exceeding 1 trillion Korean won, would add a strong revenue stream to Naver’s portfolio, potentially fueling innovations across both firms.

Naver and Dunamu haven’t confirmed the reports

Despite detailed reports, both Naver and Dunamu have issued cautious statements, saying, “While discussions are ongoing with various possibilities, nothing has been finalized.”

The proposed acquisition still requires approval from South Korea’s financial authorities, board resolutions, and shareholder consent before it can move forward.

If completed, the deal would mark one of the most significant consolidations in South Korea’s digital finance and crypto sectors to date, potentially reshaping the regional landscape for years to come.