Kara NasvigSouth Korea’s internet titan Naver is set to swallow up Dunamu, the force behind the nation’s dominant crypto exchange Upbit, in an all-stock deal pegged at 15.1 trillion won ($10.3 billion). The move, unveiled in a regulatory filing on Wednesday, catapults Naver deeper into digital assets just as global crypto markets reel from a sharp downturn.
Through its fintech unit Naver Financial, the company will swap 2.54 of its shares for each Dunamu share, issuing 87.56 million new shares in total. This pegs Naver Financial’s value at 4.9 trillion won and transforms Dunamu into a wholly owned subsidiary. The transaction awaits shareholder approval in May 2026 and regulatory green lights, with closure eyed for June.
Dunamu, once crowned at $17 billion during the 2021 crypto frenzy—when K-pop label Hybe snapped up a 2.5% slice for $400 million—has seen its fortunes ebb with the market. Its chairman and cofounder Song Chi-hyung holds 25.52% of the Seoul firm. Yet, the exchange’s operator remains a juggernaut: Upbit clocked $1.8 billion in 24-hour trades recently, per CoinGecko, and it also handles listed and unlisted stock trading.
The merger promises a fintech behemoth blending Naver Pay’s everyday payments—serving 34 million users and churning 80 trillion won annually—with Dunamu’s blockchain prowess and securities arm. Toss in insurance and broader financial services, and it’s a one-stop shop for South Korea’s digital money scene. At a joint presser in Seongnam, the firms touted synergies between Naver’s AI backbone, Naver Pay’s reach, and Dunamu’s Web3 tech.
Naver pledged 10 trillion won over five years to supercharge Korea’s AI and blockchain landscapes, aligning with the government’s 10.1 trillion won AI push for 2026 as it races the U.S. and China. In a nation where one in five of its 52 million people trade crypto, this could redefine retail finance.
“Naver’s AI must fuse with Web3 to claim next-gen market dominance,” declared billionaire cofounder and chairman Lee Hae-jin. “Dunamu and Naver Financial demand swift, audacious plays to outpace global rivals in digital finance.”
Song echoed the ambition: Post-deal, Naver Financial will craft “AI- and blockchain-driven financial infrastructure,” evolving from payments into a global platform spanning finance and daily life.
Timing feels precarious. Crypto euphoria soured in mid-October after a $19 billion leveraged-position wipeout, sparked by President Donald Trump’s tariff saber-rattling on Chinese goods. Bitcoin had soared to $126,000 in early October, buoyed by Trump’s pro-crypto stance and Wall Street’s embrace, but has since cratered over 27%, erasing 2025’s gains so far. Still, Dunamu’s Q3 numbers shine: Revenue up 35% to $266 million, operating profit leaping 54% to $162 million, fueled by institutional inflows and market rebounds.
The buzz lifted Naver shares as much as 7.7% in after-hours trading, building on September rumors that spiked them 11%. With Song and vice chairman Kim Hyung-nyon (10% holder) ceding voting rights, Naver clinches 46.5% control, steering the combined entity—valued near $13.6 billion—toward stablecoin wallets, super-apps merging e-commerce with crypto, and global Web3 thrusts, despite antitrust and regulatory hurdles.
