Naver Financial, the fintech branch of South Korea’s tech giant Naver, is reportedly moving forward with plans to acquire Dunamu, which runs the nation’s largest crypto exchange, Upbit, alongside a stablecoin initiative and expansion in the digital finance space.
Naver will make Dunamu a subsidiary through a share exchange, with board meetings to approve the stock swap scheduled soon, according to South Korean news agencies Yonhap News and Chosun reported on Thursday, citing industry sources.
Naver and Dunamu did not immediately respond to a request for comment.
Naver is often referred to as the “Google of South Korea,” and is the leading search engine in the country. The company also offers email hosting, blogs, maps, and a mobile payment service through its subsidiaries.
Upbit Korea is the largest crypto exchange in South Korea by trading volume and user base, according to CoinMarketCap.
Naver Eyes Stablecoin Project
Post-acquisition, Naver Financial is expected to launch a Korean won-backed stablecoin and other digital finance projects in its endeavor for international expansion.
Chosun, referencing an industry insider, mentioned that this “collaboration will serve as a stepping stone” for Naver “to emerge as a global fintech company.”
Eight major South Korean banks announced plans in June to introduce a stablecoin tied to the won by late 2025 or early 2026, with Bank of Korea’s deputy governor Ryoo Sangdai expressing support for banks being the main issuers of stablecoins before expanding to other sectors.
South Korea’s crypto industry has seen a more favorable environment following the election of President Lee Jae-myung in June, who has since advanced various crypto-related legislations, including a bill to legalize stablecoins.
Naver Stock Surges on Acquisition Reports
This isn’t the first time the internet giant has ventured into the crypto domain; it launched a crypto wallet, Naver Pay Wallet, in partnership with the sports-focused blockchain Chiliz in August 2024.
Naver’s stock (KRW) also reacted positively to news of its latest crypto endeavors, jumping over 11.4% to trade at 254,000 Korean won ($181).
In the second quarter, the conglomerate reported revenue exceeding $2 billion and a net profit over $355 million, compared to industry leader Google’s revenue of $96 billion in the same period.
Rising Crypto Exchange Users in South Korea
Dunamu is not publicly traded, but CoinMarketCap ranks its exchange Upbit as the largest in South Korea and the fourth largest globally, reporting $2.9 billion in 24-hour spot trading volume. For comparison, the largest exchange, Binance, holds a volume of $23.8 billion.
Related: South Korea caps crypto lending rates at 20%, bans leveraged loans
In February, the number of crypto exchange users in South Korea surpassed 16 million after gaining momentum from US President Donald Trump’s election victory last November, and it is projected to possibly reach 20 million by year-end, from a population of 51 million.
Additionally, the cryptocurrency market in South Korea is expected to hit a revenue of $1.1 billion by 2025, according to online data platform Statista, and grow to $1.3 billion by 2026.
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