Rich by Coin

Naver Corp. reaffirmed its commitment to a planned combination with Dunamu, the operator of the Upbit cryptocurrency exchange, signaling no change in strategic direction while acknowledging potential adjustments depending on regulatory developments. At its annual shareholders meeting on March 23, Naver said its stance on the related business remains unchanged. Management indicated that while the structure could be modified in line with financial regulations, the company intends to proceed with its original plan.

The proposed transaction involves a comprehensive share swap between Naver Financial and Dunamu. If completed, Dunamu would become a wholly owned subsidiary of Naver Financial and an indirect subsidiary of Naver. The integration would significantly expand Naver’s financial portfolio beyond digital payments and wealth management into the digital asset sector.

Upbit, operated by Dunamu, represents one component of that broader business scope. The transaction is currently under review by the Korea Fair Trade Commission, with industry expectations that a decision could come as early as May. Financial authorities and policymakers in South Korea have been considering tighter regulations on the governance of cryptocurrency exchanges. One proposal under discussion would cap the ownership stake of a major shareholder in an exchange at 20%.

If adopted, such a rule could alter the structure of the Naver-Dunamu combination from what was originally envisioned. As a result, market attention has shifted from whether the deal will be approved to what form it will ultimately take. Naver’s rationale for the deal centers on integrating Dunamu into its ecosystem to link digital asset services with its broader financial offerings. Should ownership caps be introduced, the company may need to revisit the structure of the transaction.

Separately, shareholders raised concerns about the company’s stock performance and shareholder return policies, noting that the pace of recovery has lagged broader market trends. Questions were also raised regarding dividend levels and the proposed increase in the cap on director compensation. Chief Executive Choi Soo-yeon said the company would continue shareholder return measures, including share buybacks and cancellations as well as cash dividends.