South Korea’s tech giant Naver has finalized a $10.3 billion acquisition of Dunamu, the parent company of the Upbit cryptocurrency exchange. The landmark deal was completed on November 27, 2025. It immediately faced a severe test when Upbit suffered a major security breach just hours later.The hack resulted in a loss of approximately $38 million from Upbit’s Solana-based hot wallet. This event casts a shadow over the newly formed alliance, raising urgent questions about security and stability in Korea’s rapidly evolving digital finance sector.
The acquisition transforms Dunamu into a wholly-owned subsidiary of Naver. This merger combines Naver’s vast search, e-commerce, and financial services with Upbit’s dominant position in the Korean crypto market.According to reports from Chosun Ilbo, the Korea Fair Trade Commission is now reviewing the combination. Regulators are assessing its potential impact on market competition. The deal is seen as a strategic move to create an integrated powerhouse for AI and blockchain technology.
The security incident occurred just as the merger was being celebrated. Upbit identified unauthorized transactions from its Solana hot wallet. The stolen assets included a variety of tokens like SOL, USDC, and several memecoins.Upbit’s response was swift. The exchange immediately suspended deposits and withdrawals for all Solana-based assets. It moved remaining funds to more secure cold storage to prevent further losses.Company CEO Oh Kyung-seok publicly assured users that Upbit would cover the entire loss. This means affected users will be fully compensated from the company’s own reserves. The pledge aims to maintain trust during a critical period.
This is not Upbit’s first major security crisis. The exchange suffered a devastating hack in 2019, losing hundreds of thousands of Ethereum. It has also faced significant fines for anti-money laundering violations in the past.The timing of this new breach complicates the regulatory review. The Korea Fair Trade Commission must now weigh the merger’s economic benefits against potential systemic risks. Consumer protection in the volatile crypto market is a top concern for officials.The incident also threatens Dunamu’s planned initial public offering on the Nasdaq. Investor confidence may be shaken, potentially delaying the listing until stronger security measures are demonstrated.
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Despite the setback, the long-term vision for the merged entity remains ambitious. Naver and Dunamu have announced a joint 10 trillion won investment plan. This funding will target innovation in artificial intelligence, Web3 services, and payment systems.A key project involves developing a Korean won-pegged stablecoin. This digital currency would be issued through Naver Pay and distributed via the Upbit exchange. The goal is to seamlessly bridge traditional finance and digital assets for everyday use.The alliance aims to position South Korea as a global leader in the next generation of internet and financial technologies. Success hinges on balancing rapid innovation with unwavering security and regulatory compliance.
