Naver Financial, the financial technology division of South Korea’s dominant search portal, is reportedly considering a stock swap agreement with Dunamu, the company behind the Upbit cryptocurrency exchange.
While initial reports from local news sources suggested that discussions had progressed towards a potential merger, a recent filing by Naver with regulatory authorities clarified that a binding agreement is not yet in place.
The official statement, submitted to the Financial Supervisory Service, confirmed that Naver and Dunamu are exploring various collaborative opportunities. These explorations encompass a potential stock exchange, the development of a stablecoin pegged to the Korean Won, and the creation of services for trading shares of privately held companies.
However, Hee Cheol Kim, CFO of Naver, emphasized that definitive details will be disclosed within the next month or upon reaching a formal agreement.
Possible Advantages for the South Korean Crypto Space
According to a research analysis by Tiger Research, a partnership between Naver and Dunamu could significantly transform South Korea’s digital asset landscape.
Their analysis stated:
“This potential alliance is comparable to Google acquiring Coinbase, a leading crypto exchange.”
The report suggests that the potential collaboration extends beyond mere corporate restructuring, indicating a fundamental change in how digital assets could integrate into mainstream finance and technology sectors.
If Naver integrates Upbit’s blockchain technology, the collaboration could accelerate the widespread adoption of digital payments across the nation.
Naver Pay currently supports over 30 million users and manages tens of trillions of Won in annual transaction volume. Introducing a stablecoin backed by the Won within this system could lower card processing fees, simplify transaction settlements, and attract a substantial number of crypto investors directly into Naver’s payment platform.
For Dunamu, the collaboration would provide increased scale and broader utility. The company recently introduced GIWA Chain, an Optimism-based Layer 2 network, signaling a shift from solely being an exchange operator to also being a blockchain infrastructure provider.
Teaming up with Naver would create new revenue streams from stablecoin use and transaction fees while simplifying user onboarding processes.
Currently, crypto sign-ups require lengthy identity verification procedures. By leveraging Naver’s mobile ID service, Upbit could streamline the KYC (Know Your Customer) process for Naver’s 40 million monthly users, reducing barriers to entry and fostering increased growth.
The analysis highlighted:
“These changes would have a direct impact on Upbit’s user acquisition. Upbit currently has 10 million registered users. Combining Naver’s 40 million user base with an easier registration process could significantly increase the number of potential users. This creates a substantial opportunity for Upbit to accelerate its user growth rate.”
The prospective benefits extend into cultural and capital markets.
Naver Webtoon, which generated $1.35 billion in revenue in 2024 and has partnerships with major entertainment brands like Disney and Marvel, could leverage blockchain technology to tokenize intellectual property, improve transparency for creators, and launch community-driven token economies.
Furthermore, Naver’s ownership of Poshmark and its trading platform for unlisted securities creates opportunities for stablecoin-based escrow systems, tokenized equity markets, and blockchain-verified advertising settlements.