Naver in Talks to Acquire Upbit Operator Dunamu

South Korean tech group Naver is in advanced talks to acquire Dunamu, the company behind cryptocurrency exchange Upbit, through a stock swap transaction. If completed, the deal would mark one of the most significant consolidations in the country's fintech sector.

According to local media, Naver would issue new shares in exchange for stakes held by Dunamu's shareholders. This approach avoids the need for a cash outlay while paving the way for a full integration of operations.

Upbit has dominated South Korea's digital asset market, at times holding more than 80% of trading share since 2022. Globally, it ranks as the fourth-largest exchange by trading volume. Such scale could complement Naver Financial, which already processes the equivalent of $58 billion annually through its payment systems.

The two firms have already begun collaboration on a won-pegged stablecoin, a project that aligns with South Korea's push to establish regulatory standards for digital assets. They have also flagged overseas expansion as a joint goal.

The timing of the news coincides with Korea Blockchain Week in Seoul, where industry watchers have focused on the country's growing crypto ecosystem. The market has also grown more competitive: Bithumb recently boosted its market share to 46% and announced a partnership with World Liberty Financial, a venture linked to Donald Trump.

Upbit's dominance has faced scrutiny from lawmakers, who have raised concerns about concentration in the domestic market. A potential acquisition by Naver, which already runs digital wallet service Naver Pay, would further reshape the landscape by merging payments, e-commerce, and digital assets under one platform.

Following reports of the talks, Naver's shares rose more than 7% to 246,000 won ($175), reflecting investor optimism about the deal's prospects.