South Korea’s largest internet company, Naver, is reportedly moving to absorb Upbit, the country’s leading cryptocurrency exchange, through a stock swap deal involving its financial arm. The move, if confirmed, would mark a major consolidation in South Korea’s digital finance landscape.
According to a report from local outlet Donga Ilbo, Naver Financial, the company’s payment subsidiary, plans to conduct a full share exchange with Dunamu, Upbit’s parent company. The transaction would make Dunamu a wholly owned subsidiary of Naver Financial, while allowing both companies to remain legally distinct.
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Details of the Reported Deal
The share swap would involve Naver Financial issuing new stock in exchange for shares currently held by Dunamu shareholders. Both companies are said to have created task force teams to finalize the process, signaling the seriousness of the reported talks.
A Dunamu spokesperson told reporters the company is “fact-checking” the news and declined to provide further comment.
If finalized, the agreement would unify Naver’s fast-growing financial services with Upbit’s cryptocurrency exchange infrastructure, potentially creating one of the most powerful players in South Korea’s fintech and digital asset sectors.
Naver’s Expanding Financial Ambitions
Founded in 1999, Naver operates South Korea’s dominant search engine and has expanded into diverse sectors including content, e-commerce, and financial services. Its subsidiary, Naver Financial, runs Naver Pay, a widely used mobile payment platform, and also offers loans, insurance, and investment products. Integrating Upbit’s digital asset expertise could significantly bolster Naver’s push into blockchain-driven finance.
Regulatory Context in South Korea
The news comes as South Korea intensifies efforts to regulate and support its cryptocurrency industry. This week, the ruling Democratic Party of Korea launched a digital asset task force to accelerate legislative groundwork. A key priority is passing a Korean won-pegged stablecoin law by the end of the year, aimed at strengthening monetary sovereignty in the digital era.
Market observers suggest that a potential Naver-Upbit deal could be partly strategic, positioning the companies to align with emerging regulations—particularly around stablecoins—and to take advantage of South Korea’s push for a clearer digital finance framework.
