Naver Financial, the fintech subsidiary of South Korea’s tech giant Naver, is reportedly moving forward with plans to acquire Dunamu, the operator of the country’s largest cryptocurrency exchange, Upbit. The acquisition comes amid Naver’s broader ambitions in digital finance, including a potential stablecoin project.
The deal will see Dunamu become a subsidiary of Naver through a share exchange, with board meetings to approve the transaction expected soon, according to reports from Yonhap News and Chosun citing industry sources. Both Naver and Dunamu have yet to comment on the reports.
Often dubbed the “Google of South Korea,” Naver dominates the country’s search engine market and also offers email, blogs, maps, and mobile payment services through its various subsidiaries. Upbit, meanwhile, is the largest crypto exchange in South Korea by trading volume and user base, according to CoinMarketCap.
Stablecoin Plans
Following the acquisition, Naver Financial is expected to launch a Korean won-backed stablecoin and pursue additional digital finance initiatives, signaling its intention to expand overseas. An industry source told Chosun that the collaboration “will serve as a stepping stone to becoming a global fintech company.”
In June, eight major South Korean banks announced plans to issue a won-pegged stablecoin by late 2025 or early 2026. Bank of Korea Deputy Governor Ryoo Sangdai has expressed support for banks as the primary issuers of stablecoins initially, with plans to gradually broaden issuance to other sectors.
South Korea’s crypto industry has gained momentum under President Lee Jae-myung, who has introduced several crypto-friendly laws, including legislation to legalize stablecoins.
Market Reaction
This is not Naver’s first venture into crypto. In August 2024, it launched the Naver Pay Wallet in partnership with blockchain platform Chiliz. Following reports of the Upbit acquisition, Naver’s stock jumped more than 11.4%, trading at $181 (254,000 KRW).
In the second quarter, Naver reported revenue exceeding $2 billion and a net profit of over $355 million, compared with industry giant Google, which posted $96 billion in revenue during the same period.
Rising Crypto Adoption in South Korea
Although Dunamu is privately held, data from CoinMarketCap ranks Upbit as the largest cryptocurrency exchange in South Korea and the fourth largest globally, with $2.9 billion in 24-hour spot trading volume. By comparison, Binance leads the market with $23.8 billion.
The number of crypto exchange users in South Korea surpassed 16 million in February, a surge partially attributed to U.S. President Donald Trump’s election win last November. Analysts project the user base could reach 20 million by year-end, out of the country’s population of 51 million.
South Korea’s cryptocurrency market is expected to generate $1.1 billion in revenue in 2025 and grow to $1.3 billion by 2026, according to Statista.
