Naver Financial, the fintech division of South Korean tech giant Naver, has announced plans to acquire Dunamu, which is responsible for running Upbit, the nation’s leading cryptocurrency exchange. This acquisition aims to bolster Naver’s ambitions in the digital finance sector, including the development of a new stablecoin project.
According to South Korean news outlets, including Yonhap News and Chosun, the acquisition will occur through a share exchange, effectively making Dunamu a subsidiary of Naver. Board meetings are scheduled to soon finalize the details of this stock swap, signaling a significant step in Naver’s evolution within the fintech landscape.
Often referred to as the “Google of South Korea,” Naver boasts a diverse array of services that includes search engines, email hosting, blogs, online maps, and mobile payment solutions. As the largest cryptocurrency exchange in South Korea by both trading volume and user base, Upbit plays a pivotal role in the nation’s crypto ecosystem, according to data from CoinMarketCap.
Following the acquisition, plans are in place for Naver Financial to roll out a stablecoin pegged to the South Korean won, along with other initiatives aimed at expanding its digital finance offerings. An industry insider noted that this collaboration is expected to pave the way for Naver Financial to become a key player on the global fintech stage.
In a related development, an August report indicated that eight major South Korean banks are planning to introduce their own won-pegged stablecoin by late 2025 or early 2026. Bank of Korea’s deputy governor has expressed support for banks to take the lead in stablecoin issuance, gradually moving to include other sectors in the future.
The favorable environment for the cryptocurrency industry in South Korea has seen a boost following the election of President Lee Jae-myung, who has initiated several pro-crypto laws, including regulations aimed at legalizing stablecoins.
Naver’s stock responded positively to the recent acquisition announcement, soaring by over 11.4%. This increase brought the share price to ₩254,000 (approximately $181), highlighting investor confidence in Naver’s strategic move into the cryptocurrency space.
This marks not the first venture for Naver into cryptocurrency; the company previously partnered with Chiliz to launch the Naver Pay Wallet in August 2024, further diversifying its offerings in the digital currency sector.
As the South Korean cryptocurrency landscape continues to evolve, the number of users participating in crypto exchanges has seen a notable rise, exceeding 16 million by February 2023. Experts project that this number could reach 20 million by the end of the year, indicating a robust interest in cryptocurrencies among the country’s population of 51 million.
Looking ahead, Statista forecasts that South Korea’s cryptocurrency market is set to generate revenues of $1.1 billion by 2025, with a projected growth to $1.3 billion by 2026.
