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South Korea’s top payment platform and largest cryptocurrency exchange are preparing to merge, with board approval expected on Wednesday and an official announcement the following day.
This agreement will bring together Naver Financial and Dunamu, the operator of Upbit, to form a powerful player that combines traditional finance.and digital assets In one of the largest economies in Asia.
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Chronology and structure of the merger
The boards of directors of the two companies intend to meet on November 26 to approve the merger. After that, a joint announcement is expected on November 27. And secondLocal media reportssenior executives will attend a press conference at the Naver campus.
The deal will involve a full stock exchange, making Dunamu a subsidiary of Naver Financial. Naver Financial’s current values ​​are estimated at around 5 trillion won, and Dunamu at around 15 trillion won. This difference indicates a stock ratio of 3:1.
Dunamu shareholders are seeking to exchange their holdings for shares in Naver Financial, the main holders of which could receive around 30% of the combined company. At the same time, Naver’s stake will decrease from 69% to 17%, but operational control is expected to remain with Naver, one of South Korea’s technology giants.
To comply with the country’s fair trade laws, Dunamu can give more than half of its voting rights to Naver. The move is intended to address market concentration issues while preserving the deal’s strategic advantages.
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Strategic outlook for the combined entity
This merger brings together two complementary leaders in South Korea’s financial sector. Naver Financial operates the country’s most popular payment platform with strong ties to Naver’s e-commerce, research and communication services. Dunamu dominates Cryptocurrency trading It operates Upbit, processing billions in trading volume every day and serving millions of users.
The combined company seeks to create a comprehensive financial system that eliminates the boundaries between traditional payments and digital assets. Its leaders are expected to confirm plans to compete with global technology giants. This strategy highlights the need for Korean fintech companies to expand and compete outside their home market.
Naver’s broad user base and powerful technology platform can accelerate the adoption of cryptocurrencies among everyday consumers. In contrast, Dunamu’s blockchain expertise and regulatory knowledge can strengthen Naver Financial’s advantage in… New financial technologies.
Regulatory review and future impact
The proposed merger is subject to regulatory review. South Korea’s Financial Supervisory Service and the Fair Trade Commission must review the deal. The FSS will assess the financial risks, in particular the impact of the integration of a licensed payment platform with Virtual asset exchange. Regulators have long separated these sectors to avoid systemic risk.
Shareholder protection is another major concern. With Never’s participation falling below 20%, questions are being raised about governance and minority rights. Regulators will likely examine whether the deal protects existing investors in the two companies.
The competition authority makes a complex decision. While executives say the merger is necessary to compete globally, the Fair Trade Commission must determine whether it represents an unfair concentration of control over South Korea’s largest payment network. The cryptocurrency exchange. The review focuses on potential impacts on market competition and consumer choice.
Approval will take months. Both companies have to emphasize that the benefits of the merger outweigh any risk to financial stability or fair competition. The decision may set a precedent for how traditional finance and digital assets will merge in South Korea and across Asia in the future.
