The merger between Naver Financial and Dunamu has been delayed by approximately three months. The companies had initially planned to complete the merger in the first half of this year, but a delay in the business combination review combined with restrictions on major shareholders’ stakes in cryptocurrency exchanges have emerged as complicating factors. Naver (035420.KS) disclosed on the 30th that the shareholder meeting for the comprehensive share exchange between its subsidiary Naver Financial and Dunamu, operator of Korea’s largest cryptocurrency exchange Upbit, has been postponed from May 22 to August 18.
The deal closing date has also been pushed back from June 30 to September 30. The delay is attributed to regulatory approval procedures and legal issues. The original review deadline was the 28th of this month, but the period was extended after the FTC recently requested additional materials.
As discussions on legislation related to the ‘Digital Asset Basic Act’ appear to be underway, the content of the law once enacted and enforced could potentially affect the progress or outcome of this comprehensive share exchange. Regulatory developments and potential new legislation could shape the merger timetable, with observers awaiting further updates on approvals and any impacts from the Digital Asset Basic Act.
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