A possible stock-for-stock merger may bring Naver Pay’s massive user base under the same roof as the country’s largest crypto exchange.
Shares of South Korea’s internet giant Naver have risen nearly 10% in the past week following reports that its fintech subsidiary, Naver Financial, is in advanced talks to merge with Dunamu, the operator of the country’s largest cryptocurrency exchange, Upbit.
If the stock-for-stock merger proceeds, Dunamu would become a Naver subsidiary—marking one of the most significant integrations between Korea’s traditional fintech and blockchain-driven digital finance sectors. Both companies have confirmed that negotiations are ongoing but declined to share specifics, fueling speculation about the scope and structure of the potential deal.
A Landmark Collaboration in the Making
At the center of the talks is a proposed comprehensive stock swap, under which Naver Financial could absorb Dunamu based on mutually agreed valuations. This partnership would unite:
- Naver Pay’s 30 million+ user base with Dunamu’s Upbit, the world’s fourth-largest crypto exchange.
- Naver’s dominance in digital payments and commerce with Dunamu’s leadership in blockchain technology.
According to Dunamu spokesperson Juan Kim, the firms are “exploring a range of additional collaborations” beyond stablecoin projects and unlisted stock platforms, though no binding agreements have yet been finalized.
Regulatory and Shareholder Hurdles
Even with mutual interest, the merger would need two-thirds shareholder approval from both sides. Analysts expect this to be achievable, given strong investor sentiment reflected in:
- Naver’s 10% stock surge over the week.
- Dunamu’s growing valuation in over-the-counter trading.
Market observers view the merger as a pivotal step toward Korea’s broader digital finance convergence, blending traditional fintech services with decentralized technologies.
Building an Integrated Digital Finance Ecosystem
If successful, the merger could set the foundation for a unified financial platform that combines payments, crypto assets, and lending under one roof. Analysts highlight stablecoin integration as a likely focal point — potentially introducing a won-backed digital currency embedded within Naver Pay.
Daishin Securities analyst Lee Ji-eun projects that such innovation could unlock new revenue models, including:
- Crypto-collateralized lending and investment services
- Tokenized payment solutions within Naver’s commerce platforms
Lee estimates that the merged entity could generate up to $210 million annually by 2030 through these offerings.
Merging Web 2.0 with Web 3.0
Industry experts describe the merger as a fusion of Web 2.0 (platform-driven services) and Web 3.0 (decentralized technologies).
Professor Yoon Seok-bin of Sogang University called it “a marriage between traditional platforms and blockchain innovation.” He predicts that:
- The two firms could jointly launch a ‘super app’ integrating payments, investments, and crypto wallets.
- Naver’s global footprint may help Upbit expand internationally, while Dunamu’s strong liquidity could bolster Naver’s competitiveness against global fintech giants such as PayPal and Stripe.
Strong Fundamentals Behind Both Firms
Both Naver Financial and Dunamu are profitable and well-capitalized.
- Naver Financial: $1.18 billion in revenue, $74 million in operating profit (2023)
- Dunamu: $1.24 billion in revenue, 68.5% operating margin
Given Dunamu’s valuation—around three times that of Naver Financial—analysts expect Dunamu Chairman Song Chi-hyung to emerge as the largest shareholder of the merged company. Eugene Investment & Securities projects a combined valuation between $29 billion and $36 billion, particularly if the new entity pursues a U.S. listing similar to Naver’s Webtoon Entertainment on Nasdaq.
Strategic Ambitions and Global Outlook
For Naver, this merger offers a route to global expansion by integrating blockchain-based financial tools into its fintech ecosystem. For Dunamu, it’s a gateway to evolving beyond crypto trading into a comprehensive financial services powerhouse.
If the deal is finalized, it could serve as a blueprint for how Web 2.0 and Web 3.0 can converge to create scalable, secure, and inclusive financial ecosystems — reshaping not only Korea’s fintech market but potentially influencing the future of digital finance worldwide.
