Long-time stakeholder in Upbit’s parent seeks exit just day after South Korea lifts martial law: report

Woori Technology, a long-time shareholder in Dunamu, parent company of crypto exchange Upbit, plans to exit after nine years, following a failed coup in South Korea.

Woori Technology Investment, a South Korean venture capital firm, is reportedly planning to sell its nine-year stake in Dunamu, the parent company of crypto exchange Upbit, local media outlet Bloter has learned.

While the exact sale price has not been disclosed, discussions suggest it could exceed the current market value of shares traded on the over-the-counter market, with an expected return of around 100 times or more. The sale is expected to be conducted via a block deal, a method where large shareholders transfer stocks before or after market hours to avoid impacting market prices.

Woori holds a 7.22% stake in Dunamu, according to the company’s Q3 financial report filings with South Korea’s Financial Supervisory Service. At current OTC market prices, the stake is valued at about 425.3 billion KRW (over $300.7 million as of press time).

Woori initially acquired the stake for 5.5 billion KRW in 2015, yielding a return of approximately 73 times. As of Q3 this year, the book value of the stake is reported at 593.9 billion KRW, 108 times the original investment, the report notes. The firm is reportedly considering attracting international investors, as it faces challenges in raising funds from domestic investors due to regulatory restrictions.

The decision to sell follows shortly after a failed coup attempt in South Korea, where the country’s president, Yoon Suk Yeol, declared martial law in response to accusations of pro-North Korean sentiment among parliament members. However, the National Assembly swiftly nullified the declaration, lifting the martial law within hours.