South Korea's Top Crypto Exchange to Be Absorbed By Tech Giant in $10.3 Billion Deal

In brief

Naver Financial is acquiring Dunamu—operator of Upbit—in a $10.29 billion all-stock deal that will make Dunamu’s leaders the largest shareholders in Naver.
The merger keeps both companies’ businesses running while they explore restructuring and jointly pursue growth, with stablecoin initiatives at the center of their plans.
The deal now awaits approval from South Korea’s Fair Trade Commission.

South Korea’s largest crypto exchange is officially getting acquired—pending regulator approval—by one of the country’s top tech giants.

Naver Financial agreed Wednesday to absorb Dunamu, operator of crypto exchange Upbit, in an all-stock deal valued at $10.29 billion. According to a related filing, the deal will see Naver issue 2.54 new shares for every share in Dunamu, as the company is absorbed.

That deal would see Dunamu’s leadership become the largest shareholders in parent company Naver Financial, despite the crypto company being absorbed as a wholly owned subsidiary.

Both companies will continue to operate their existing businesses under the merger, according to Wednesday’s filing.

“In addition, they will review various restructuring plans to secure future growth engines through functional and organic cooperation between the two companies,” the outlined agreement said.

The deal, which has been hotly anticipated for months, would combine South Korea’s largest crypto exchange with the nation’s leading payments platform, in a moment when the digital assets economy and traditional finance are beginning to merge on the global stage.

Stablecoin-related plans are reportedly at center of the Dunamu-Naver merger, given both companies have ambitions in the exploding sector.

After the United States passed a landmark stablecoin bill in July legalizing the asset class, other nations have raced to embrace the currency-pegged digital tokens, which serve as a key connector between traditional economies and the crypto market.

In July, Dunamu revealed plans for a won-backed stablecoin issued by Naver. The company has also developed a layer-2 Ethereum network specifically designed for facilitating stablecoin transactions and retail payments.

The deal between both companies now must be approved by South Korean regulators, namely the country’s Fair Trade Commission.