Seoul: Naver Corp. is on the verge of acquiring Dunamu Inc., the operator of Upbit, South Korea's largest cryptocurrency exchange, as a wholly owned subsidiary. This strategic move is part of Naver's ambitious plan to expand its presence in the digital finance sector, industry sources revealed on Thursday.

According to Yonhap News Agency, Naver intends to execute a comprehensive stock swap via its fintech subsidiary, Naver Financial, to fully integrate Dunamu. A source familiar with the situation mentioned that both companies are expected to hold board meetings soon to approve this stock swap arrangement.

The anticipated integration could lead to the launch of a won-backed stablecoin project and other digital finance initiatives, potentially transforming the digital finance landscape in South Korea. Upbit, operated by Dunamu, ranks as the country's leading and the world's fourth-largest crypto exchange by trading volume.

Despite these developments, Naver has exercised caution in a regulatory filing, indicating that no definitive decision has been made. The filing stated, "Naver Financial is in talks with Dunamu on various collaborations, including a stock swap, a stablecoin project, and unlisted share transactions. But nothing has been determined yet."

The news of the potential acquisition has positively impacted Naver's stock value, which saw an 11.4 percent increase to close at 254,000 won (US$181.3), significantly outperforming the Korea Composite Stock Price Index's (KOSPI) slight decline of 0.03 percent.