Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Dunamu takeover blessing for Naver: analysts
Naver's headquarters in Seongnam, Gyeonggi Province / Yonhap
By Lee Yeon-woo
A comprehensive stock swap between Naver Financial and Dunamu could significantly boost Naver's corporate value and accelerate its entry into the digital asset payments sector, analysts said Friday.
"The business partnership with Dunamu should be seen not just as revenue from virtual asset transactions, but as a stepping stone into broader digital asset businesses such as real-world assets (RWA) and stablecoins," said Lee Hyo-jin, an analyst at Meritz Securities.
Lee noted that Naver and Mirae Asset Group currently hold Naver Financial shares in a 3:1 ratio, saying that Mirae Asset's securities arm could potentially participate in RWA tokenization, while Dunamu would take charge of distribution.
On Thursday, reports emerged that Naver and Dunamu are negotiating a deal that would give Naver Financial full ownership of the cryptocurrency exchange.
Under the proposed terms, Dunamu shareholders would transfer their stakes to Naver Financial in exchange for newly issued shares.
Both companies confirmed the ongoing discussions but said no final agreement has been reached.
Naver Financial currently processes 80 trillion won ($57 billion) in annual payments, while Upbit, operated by Dunamu, is the world's fourth-largest cryptocurrency exchange by trading volume.
News of the potential deal sent Naver shares surging 12.5 percent on Thursday, with the rally extending into Friday. The stock closed at 256,500 won, marking a further 0.98 percent gain from the previous session. The advance came despite a broader market downturn, as the benchmark KOSPI slipped 2.45 percent to finish at 3,386.05.
Lee Hae-jin, founder of Naver and chairman of its board, left, and Song Chi-hyung, chairman of Dunamu / Yonhap, Newsis
Jay Jo, a senior research analyst at Tiger Research, said the deal resembles "a scenario where Google acquires Coinbase."
Jo added that Naver's 40 million users could streamline onboarding for Upbit, while stablecoin integration could improve payment efficiency across Naver’s platforms. He also highlighted potential for new blockchain revenue models using Naver Webtoon's intellectual properties.
"If Dunamu remained only a crypto exchange business, cooperation between the two companies would be limited," Jo said, noting Dunamu's launch of GIWA, its proprietary blockchain infrastructure platform, on Sept. 9.
"Blockchain infrastructure can naturally integrate with various industries. This is where Naver's vast business domains connect with Dunamu's infrastructure capabilities," Jo added.
Analysts say the proposed stock swap could also have a significant impact on Naver's bottom line. Naver has failed to attract market attention over the past two to three years due to slowing growth in its core businesses.
"With this deal, all of Dunamu's operating profits could be consolidated into Naver’s earnings, which would likely have a positive effect on Naver's share price," said Ahn Jae-min, an analyst at NH Investment & Securities.
In 2024, Dunamu reported revenue of 1.73 trillion won, operating profit of 1.19 trillion won, and net profit of 983.7 billion won. Over the same period, Naver Financial posted revenue of 1.65 trillion won, operating profit of 103.5 billion won, and net profit of 162.3 billion won.