Korea's FTC Flags Competition Concerns in Naver Financial–Dunamu Deal

What the deal involves

The companies plan a comprehensive share swap, with about 2.54 Naver Financial shares issued for each Dunamu share. Dunamu would become a wholly owned subsidiary of Naver Financial, with the exchange scheduled for 31 March next year.

The FTC analyzed ten markets, including online payments, digital asset exchanges, search portals, online advertising, online shopping, financial MyData, unlisted stock brokerage, listed stock investment platforms, online secondhand trading and won-denominated stablecoin issuance. It identified 12 horizontal, vertical and conglomerate combinations. Two horizontal overlaps, in listed stock investment platforms and secondhand trading, were judged not to restrict competition.

The concern centers on conglomerate and vertical links between market leaders, for instance between crypto exchanges, payments, search and shopping, where rivals could be shut out when competitive products are bundled.

Stablecoins included before a market exists

The FTC also examined won stablecoin issuance even though enabling legislation is not yet in place. Officials cited multiple bills pending in the National Assembly and the companies' own submissions showing a focus on the business. They argued that declining to assess a market that has not yet formed could harm future competition. Market share and concentration could not be calculated concretely.

The companies submitted remedy plans, refined after FTC requests and expert input. They impose obligations that differ by market, centered on equal treatment of competitors and limits on business practices. Review staff consider these sufficient to resolve the concerns, but Jeon stressed that the full commission has the last word. He said the FTC chair has aimed to finish deliberations this year and that he expects that to happen.