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Crypto·2 min read

Naver Financial–Dunamu Merger Nears Approval With Remedies

A Korea Fair Trade Commission case officer says the remedies offered by Naver Financial and Upbit operator Dunamu can resolve competition concerns. The full commission has the final say.

Smartphone showing a crypto exchange app next to a payment app, symbolizing the Naver Financial and Dunamu merger.
Image: 미래를 보는 창 - 전자신문
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The planned combination of Naver Financial and Dunamu, the operator of Korea's largest crypto exchange Upbit, moved closer to clearance on 10 November. A case officer at the Korea Fair Trade Commission (KFTC) judged that the final remedy package submitted by the two companies is enough to address competition concerns.

The KFTC's full commission still has to make the final decision. Even so, the assessment suggests the deal is likely to be allowed with conditions attached. The case officer had earlier concluded that the merger could substantially restrict competition in several markets, including simple payments and crypto exchanges, and proposed corrective measures. The companies revised and supplemented their proposal until it reached its final form.

What the companies want

Naver brings search, shopping, user reach and AI technology. Naver Financial runs Naver Pay, payments, remittances and financial product comparison. Dunamu contributes Upbit plus custody infrastructure and blockchain expertise. Dunamu has said it aims to build next-generation financial infrastructure that combines AI and blockchain and to seek opportunities abroad.

The most closely watched opportunity is a won-denominated stablecoin. If such coins are formally legalised, the companies could link Naver's shopping platform and Naver Pay network with Upbit's infrastructure, for example by accepting stablecoins at checkout or offering blockchain-based remittance and settlement. Cross-border payments are a possible extension.

Market impact

Fintech rivals such as Toss and KakaoPay, which have expanded from payments into investing and asset management, would face a stronger competitor. Banks could feel pressure on payments and foreign-exchange business, and brokerages' mobile trading systems could face new competition. Upbit's position could strengthen further if linked to Naver's search, shopping and payment services, leaving Bithumb and Coinone to compete on ecosystem as well as fees.

The synergies the companies hope for are exactly where the KFTC sees risk, so the conditions imposed may shape how far the combined business can expand. A Dunamu representative said the company had explained in good faith the purpose of the deal: securing global competitiveness during a shift in digital finance.

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Tags:naver financialdunamuupbitstablecoinftckorea

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