Upbit Operator Dunamu, Naver Financial to Vote on Merger as Market Eyes Possible IPO Path

Dunamu, operator of South Korea’s largest crypto exchange Upbit, and top payments provider Naver Financial are teaming up for a merger that will create a financial giant worth approximately $13.8 billion (20 trillion won).

Both companies are set to hold separate board meetings on Wednesday to approve a comprehensive stock swap merger, with a joint announcement scheduled for Thursday at Naver’s headquarters in Seongnam, according to a Maeil Business Newspaper report.

Market participants expect the combined entity to pursue a Nasdaq listing that could unlock a valuation of at least $34.5 billion (50 trillion won) if its stablecoin and blockchain infrastructure attract global investor interest, according to a Seoul Economic Daily report.

The merger links Korea’s largest crypto exchange with its leading payments platform at a time when the government is preparing new digital-asset rules and evaluating how stablecoins should be issued and used.

Under the proposed merger, all Dunamu shareholders will reportedly exchange their shares for Naver Financial stock at an estimated 1:3.3 – 3.4 ratio, making Dunamu a wholly owned subsidiary, according to the report.

The stock swap will make Dunamu Chairman Song Chi-hyung and Vice Chairman Kim Hyung-nyeon the largest shareholders of the combined company with nearly 30% ownership.

Naver’s stake will drop from 69% to 17%, though Dunamu is expected to delegate more than half of its voting rights to Naver to avoid monopoly regulations, the report says.

Executives from both sides will gather on Thursday to detail how Naver Pay will link with Dunamu’s blockchain and virtual asset systems.

Stablecoin strategy

Peter Chung, head of research at Presto Research, told Decrypt that the merger is driven by both companies’ stablecoin ambitions, with Asian tech giants closely watching the deal.

In July, Dunamu revealed plans for a won-backed stablecoin with Naver Pay as lead issuer, according to a KBS News report.

The company has since developed GIWA, a custom Ethereum layer-2 blockchain designed for stablecoins and payments.

Naver Group has long been looking “to advance in payments,” Chung said, noting Dunamu also hopes to move its products “beyond retail speculator” into broader circulation.

“Stablecoin can be the conduit for both sides, and by leveraging each other’s strengths, both can achieve their goals,” he noted.

Sentiment on prediction market Myriad, owned by Decrypt’s parent company Dastan, suggests low conviction that stablecoins will cross $360B before February, with users placing just a 12.3% chance on the outcome.

The merger still needs clearance from financial regulators and the Fair Trade Commission, which will review risk, compliance, and competition issues.

Chung said the risk “exists,” but regulators will likely respond by opening the stablecoin market to more fintech players, noting the country still has “four other licensed crypto exchanges, they’ll be all up for grabs.”

The announcement comes weeks after Dunamu was fined $24.3 million (35.2 billion won) for violating customer identification obligations in 5.3 million cases, with additional sanctions expected against other Korean exchanges in the coming months, as per a local media report.