Seoul: Naver Financial Corp., a subsidiary of South Korea's leading portal operator Naver Corp., has announced its decision to acquire Dunamu Inc., the operator of Upbit, the country's largest cryptocurrency exchange. The acquisition will see Dunamu become a wholly owned subsidiary of Naver Financial.

According to Yonhap News Agency, Naver Financial's board approved the acquisition in a share-swap deal, where each Dunamu share will be exchanged for 2.54 shares in Naver Financial. This strategic move aims to secure new growth opportunities for Naver Financial by leveraging digital assets.

Upbit stands as the top cryptocurrency exchange in South Korea and ranks fourth globally in trading volume. The acquisition is set to bolster Naver's expansion into digital finance, enhancing its position in the rapidly growing blockchain-based services sector. The anticipated outcome is a new mega financial platform valued at approximately 20 trillion won (US$13.6 billion).

The integration will proceed following shareholder approval, with industry experts predicting significant developments. Naver Financial is expected to initiate a won-backed stablecoin project and other digital finance ventures, potentially transforming South Korea's digital finance landscape.

Lee Ji-eun, an analyst at Daeshin Securities, noted that the companies aim to accelerate the establishment of a won-based stablecoin ecosystem. This would involve issuing a stablecoin, linking it to Naver Pay, and securing real-world payment applications.

Chung Ui-hoon, an analyst at Eugene Investment and Securities, highlighted Naver's potential to lead the domestic won-based stablecoin market, given its extensive digital platform ecosystem that spans e-commerce and online content.