Seoul: Hana Financial Group Inc., a prominent banking institution in South Korea, has announced its decision to acquire a significant stake in Dunamu Inc., the top crypto exchange operator in the country. This landmark investment, valued at 1 trillion won (approximately US$669 million), marks the largest-ever investment by a bank into a virtual asset operator in South Korea.

According to Yonhap News Agency, Hana Financial's flagship entity, Hana Bank, will acquire a 6.55 percent stake in Dunamu, the operator of the renowned Upbit exchange, from Kakao Investment. This acquisition will position Hana Financial as the fourth-largest shareholder in Dunamu. Kakao Corp., the parent company of Kakao Investment, confirmed the sale, stating it is part of their strategy to "secure funds for future investment."

The equity transaction is slated to occur on June 15, which will result in Kakao's share in Dunamu decreasing to 4.03 percent. Historically, Kakao Ventures, Kakao Corp.'s venture capital arm, invested 200 million won in Dunamu in 2013, followed by additional investments totaling 3.3 billion won in 2015. This partnership signifies a deeper collaboration between a traditional financial institution and a virtual asset operator, extending beyond basic services to innovative digital financial offerings, including stablecoin initiatives.

This move also comes amid regulatory pressures on local crypto exchange operators by South Korea's financial regulator, aimed at reducing major shareholders' stakes to enhance financial stability and business accountability. In a related development, Naver Financial Corp., a fintech subsidiary of Naver Corp., announced plans in November to acquire Dunamu as a wholly-owned subsidiary through a share-swap agreement.

At the close of the previous year, Dunamu reported assets valued at 13.17 trillion won and a net profit of 709 billion won on sales of 1.56 trillion won, underscoring its significant presence in the crypto market.