Naver Financial to Acquire Upbit in $10B Merger: A New Era for Korean Fintech

TLDR

• Naver to fully acquire Dunamu via $10B stock swap to strengthen digital finance.
• Upbit integration boosts Naver’s reach in blockchain, payments, and asset services.
• Massive new share issuance dilutes Naver stake but unlocks innovation synergy.
• Merger aligns fintech power with crypto growth as digital finance accelerates.
• Upbit’s high profits fuel Naver’s bid to lead South Korea’s digital finance shift.

Naver Financial has confirmed a landmark merger with Dunamu, the operator of South Korea’s largest cryptocurrency exchange, Upbit. The deal, valued at approximately $10 billion, will make Dunamu a wholly owned subsidiary of Naver Financial. This strategic move marks a defining moment for South Korea’s fintech and digital asset sectors.

Stock Swap Structure and Financial Details

Naver Financial will integrate Dunamu through a stock-swap transaction to strengthen its position in digital finance. The exchange ratio is set at 2.5422618 Naver Financial shares for every Dunamu share. The effective date for the stock exchange is scheduled for June 30, 2026.

The company will issue 87.56 million new shares worth nearly 15.13 trillion won to facilitate the merger. Each Naver Financial share is valued at 172,780 won, reflecting a strong market position. This issuance will expand the firm’s equity base while ensuring full ownership of Dunamu.

Naver’s ownership stake in Naver Financial will be diluted from 69% to around 17% following the transaction. However, the move will enable the fintech arm to consolidate its control over Upbit’s fast-growing business. Both companies expect the merger to generate strong synergy across payment, blockchain, and digital asset services.

Strategic Vision and Corporate Integration

Naver aims to enhance its fintech ecosystem by combining its digital finance operations with Upbit’s cryptocurrency infrastructure. The merger will align Naver Financial’s payment, asset management, and lending services with Dunamu’s trading and blockchain expertise. This integration seeks to accelerate innovation in South Korea’s evolving financial landscape.

Executives plan to maintain existing structures initially while exploring new digital service opportunities. Naver founder Lee Hae-jin will outline the detailed roadmap at an upcoming board meeting. The company expects greater efficiency and expansion once Dunamu operates under Naver Financial’s ownership.

Both Naver and Dunamu will collaborate on technology development and regulatory compliance to ensure smooth operations. Their combined resources are likely to strengthen South Korea’s competitiveness in digital finance. Moreover, the partnership may support future international expansion and potential listing opportunities.

Market Context and Future Outlook

South Korea’s financial sector continues to embrace digital transformation driven by rapid fintech adoption. Naver, already a dominant force with Naver Pay, seeks to extend its influence into the cryptocurrency arena. The addition of Upbit will position Naver at the forefront of digital asset innovation.

Upbit remains South Korea’s leading crypto exchange, accounting for over 70% of domestic trading volumes. Dunamu reported a 35% revenue increase and a 145% net profit surge in the latest quarter. These figures highlight its profitability and growth potential under Naver’s strategic management.

The merger underscores Naver’s ambition to build a comprehensive digital finance empire. It combines payment technology, investment platforms, and blockchain-based services into a unified structure. As South Korea moves toward becoming a global digital finance hub, the Naver-Upbit merger sets the stage for a transformative era.

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