Naver Set to Acquire Upbit in Landmark Deal Shaking South Korea’s Crypto Market

South Korean internet giant Naver, with over 40 million monthly active users, is preparing to acquire Dunamu, the operator of leading crypto exchange Upbit, in a landmark move that could reshape the nation’s financial and digital asset landscape.

Naver to Absorb Dunamu Through Stock Swap

According to local media reports on Thursday, Naver will bring Dunamu under its umbrella as a wholly owned subsidiary through a comprehensive stock-swap agreement.

The transaction will be carried out via Naver Financial, the company’s fintech division, which will issue new shares to fully acquire Dunamu. This stock-only approach allows Naver to secure the deal without deploying upfront cash.

Following the announcement, Naver’s stock surged 11%, reflecting investor optimism about the acquisition.

Why the Deal Matters for South Korea’s Crypto Market

Upbit is not only South Korea’s largest cryptocurrency exchange, but also the fourth-largest globally by daily trading volume. It plays a central role in the trading liquidity of major altcoins, including XRP and Cardano.

Together with Bithumb, Korbit, and Coinone, Upbit forms the so-called “Big Four” exchanges that dominate the Korean crypto industry.

Naver + Upbit: Deep dive into Korea’s biggest crypto-tech merger

For Naver, the acquisition strengthens its fintech presence, which already processes more than $58 billion in annual payment volume. Both Naver and Dunamu are also working on a Korean-won-pegged stablecoin, and analysts see the merger as a strategic step toward international expansion.

Regulatory and Industry Challenges

Despite the deal’s promise,crypto trading in South Korea remains heavily regulated, restricted primarily to South Korean citizens.

Still, the move aligns with a global trend of internet and fintech giants integrating cryptocurrency services into their ecosystems. From PayPal and Stripe in the U.S. to Kakao, Rakuten, and now Naver in Asia, major players are embedding crypto products and rails into broader payment and financial markets.

If approved, Naver’s acquisition of Upbit could mark a turning point in the Korean crypto sector, with ripple effects felt across the global digital asset industry.

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