Seoul: Naver Corp. is expected to confirm its plan to acquire Dunamu Inc., the operator of South Korea's largest cryptocurrency exchange, Upbit, at its board meeting planned for next week, industry sources said Wednesday.

According to Yonhap News Agency, Dunamu also plans to hold a board meeting on Nov. 26 to confirm the details of the plan. Naver is reportedly pushing for a comprehensive stock swap through its fintech subsidiary, Naver Financial, to make Dunamu a wholly owned subsidiary. This move is aimed at expanding Naver's business in the digital finance sector.

The two firms are anticipated to launch a won-backed stablecoin project, along with other digital finance initiatives, once the integration is finalized. This could potentially reshape South Korea's digital finance landscape. After confirming the plan at their respective board meetings, the companies must secure approval at a shareholders' meeting to officially begin integration procedures.

Once the acquisition is completed, Dunamu Chairman Song Chi-hyung is expected to become Naver Financial's largest shareholder, with Naver as the second-largest shareholder. Industry sources estimate that the share-swap ratio between Naver and Dunamu will likely fall in the range of 1 to 3 or 1 to 4.

Naver is known as the operator of South Korea's dominant internet portal, while Upbit stands as the country's leading and the world's fourth-largest cryptocurrency exchange in terms of trading volume.