Naver and Upbit to pour $7 billion into AI, blockchain following mega-merger: reports

South Korea's Naver and Dunamu plan to invest 10 trillion Korean won ($6.8 billion) in the next five years into building a next-generation financial infrastructure based on the combination of AI and blockchain, according to multiple local news reports. 

Naver is a leading IT conglomerate with $284 billion in market capitalization, while Dunamu is the parent company of Upbit, the largest cryptocurrency exchange in South Korea. On Wednesday, Naver Financial, the group's fintech arm, officially confirmed that it is acquiring Dunamu through a share-swap deal.

Following the merger confirmation, the companies held a joint press conference in Seoul on Thursday, with leaders of Naver, Naver Financial and Dunamu present.

Dunamu President Song Chi-hyung said the three companies will build a system that will "establish a new global framework" that encompasses not only payments and settlements but also the financial sector as a whole, Chosun Ilbo reported.

Choi Soo-yeon, the CEO of Naver, reportedly said that the companies see new opportunities at the "critical juncture" between the popularization of blockchain and the transition to agentic AI.

This merger marks one of the largest tie-ups in South Korea's fintech and crypto sector, combining Naver's AI, commerce capabilities, Naver Financial's payment and financial infrastructure and Dunamu's digital asset trading and blockchain ecosystem.

Stablecoin race

Meanwhile, the companies will also work on launching their own Korean won-pegged stablecoin, Dunamu CEO Oh Kyung-seok said, according to a report from BlockMedia. Earlier this week, local media reported that Naver Financial is launching a stablecoin wallet service for a local project in Busan next month.

South Korea is currently pushing to establish a local currency-pegged stablecoin market, as South Korean President Lee Jae Myung chose the initiative with an aim to protect monetary sovereignty against the dominant U.S. dollar stablecoin market. 

Naver's rival IT giant Kakao has also recently advanced its won-stablecoin initiative to the actual development stage, while recruiting blockchain service backend developers. 

While local giants compete to take the lead in the country's stablecoin market, legislative efforts have stalled. Although several lawmakers have proposed regulatory groundwork for a local stablecoin market, development is complicated by the Bank of Korea's stance insisting that only registered banks be permitted to issue won-stablecoins.