South Korean tech titan Naver confirmed Friday it will acquire Dunamu, operator of the nation’s dominant crypto exchange Upbit, in an all-stock deal valuing the target at $10.3 billion (15.1 trillion won).
The acquisition creates a $15 billion fintech colossus, merging Naver’s 34 million payment users with an exchange that controls nearly 80% of South Korea’s crypto volume. Naver shares jumped 7% on the rumor before retracing, while Naver-affiliated token Kaia (KAIA) slid 3% to $0.08.
The Deal: All Paper, No Cash
Under the terms, Naver Financial will issue new shares to swallow Dunamu whole. The swap ratio – roughly 2.54 Naver Financial shares for every Dunamu share – locks the crypto operator into Naver’s ecosystem until at least June 2026.
Naver CEO Choi Soo-yeon framed the move as an aggressive bet on the convergence of AI and Web3, pledging a further 10 trillion won ($6.8 billion) investment over five years.
“We are at an inflection point where mass adoption of blockchain and rapid advances in generative AI are unfolding at the same time,” Choi said in a statement. “Our goal is to fuse AI and blockchain to create new types of services.”
The Reality Check
The merger cements a monopoly. Upbit already processes some $2 billion in daily volume—dwarfing rival Bithumb. By integrating Upbit directly into Naver Pay, the tech giant effectively corners the Korean retail market, where one in five citizens holds a trading account.
Regulatory friction is guaranteed. The Korea Fair Trade Commission must approve the deal, and concerns over data concentration are already surfacing.
The Outlook
Shareholders vote in May 2026. If approved, the deal closes in June. Reports indicate Dunamu may leverage the merger to pivot toward a Nasdaq IPO, bypassing the stagnant local bourse entirely.
