Naver plans strategic move: Possible stock merger with Upbit operator Dunamu

The South Korean internet giant Naver plans a promising merger with Dunamu, the operator of the country's leading crypto exchange Upbit. This strategic vision could grant Naver significant influence in the crypto market by uniting Upbit under the Naver Group umbrella. The news of a potential comprehensive stock merger led to an impressive 11.4% rise in Naver shares on Thursday, according to Google Finance data, after the local media outlet *Chosun* reported on it. The prospective deal would make Dunamu a subsidiary of Naver Financial, enabling the tech giant to penetrate crypto markets more deeply. Naver has filed a report with the Korea Exchange confirming the negotiations on a stock merger with Dunamu, considering further collaboration opportunities such as stablecoins and trading in unlisted stocks. Although no concrete details have been finalized, Naver has promised to report again within a month or upon confirmation of specific terms. Additionally, a Dunamu spokesperson mentioned that the discussions also include potential collaborations in Naver Pay alongside stablecoins, although no final agreements have been made. These talks are built on a partnership announced in July when Naver Pay and Dunamu unveiled plans for a KRW Stablecoin, with Naver slated as the leading issuer. Dunamu recently introduced a customized Ethereum Layer-2 blockchain called "GIWA," representing a significant development in the infrastructure for stablecoins and payments. South Korean lawmakers are preparing to introduce a law on stablecoins in October to clarify relevant requirements and standards. Leading companies like Tether and Circle have already held meetings with major financial groups in South Korea in preparation for regulatory changes. Should the merger succeed, Naver would be the first major South Korean company to fully integrate an exchange into its financial ecosystem. The corporation, which already dominates the search engine, messaging, and payment sectors in South Korea, could significantly advance the cross-selling of its financial products, the distribution of stablecoins, and the development of new trading products by incorporating Upbit.