Naver Makes $10.3B Power Play, Buying Upbit Owner to Dominate Korea’s Crypto Future

Naver Corp is moving deeper into South Korea’s digital asset market. The company has agreed to acquire Dunamu Inc., the operator of the largest crypto exchange in the country, Upbit.

As per Bloomberg, in an all-stock deal worth about US$10.3 billion (AU$15.76 billion), Naver’s fintech arm, Naver Financial Corp, will issue 2.54 new shares for every Dunamu share. After the transaction closes, Dunamu will become a wholly owned subsidiary of Naver Financial.

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Naver Acquires South Korea’s Largest Crypto Exchange Operator

South Korea is embracing cryptocurrency following the election of its new president, Lee Jae-myung, who has publicly supported the development of the local crypto market and new regulatory frameworks.

Upbit controls more than 80% of South Korea’s crypto trading market and often ranks among the world’s largest exchanges by volume. Generally, the country is one of the most active retail crypto markets globally, with about 18 million people, which is about a third of the population, trading digital assets one way or another.

Naver said the acquisition is aimed at “securing future growth engines based on digital assets” and will allow it to integrate crypto and payments services more tightly into its broader ecosystem.

The share swap values Naver Financial at 4.9 trillion won (around AU$5.1 billion) and Dunamu at 15.1 trillion won (around AU$15.76 billion). Naver’s equity stake in Naver Financial will drop from 70% to 17% after the deal, but it will keep control through delegated voting rights, giving it 46.5% of total voting power.

Bloomberg also reported that Upbit is looking at an initial public offering (IPO) on the Nasdaq once the merger is complete. The exchange would join many other crypto companies that have gone public recently, including Bullish, Circle, and Gemini. 

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