Regulators weigh antitrust safeguards as Naver-Dunamu deal stalls
Naver Chairman Lee Hae-jin, center, speaks during a press conference to announce Dunamu's acquisition at the Naver headquarters in Seongnam, Gyeonggi Province, November 2025. From left are Naver Financial CEO Park Sang-jin, Naver CEO Choi Soo-yeon, Lee, Dunamu Chairman Song Chi-hyung and Dunamu CEO Oh Kyoung-suk. Courtesy of Naver
Financial authorities said Thursday that they are considering safeguards to address concerns over potential market dominance arising from the merger of Naver Financial and Dunamu.
"The Fair Trade Commission (FTC) is currently conducting a thorough review of whether the proposed merger between Naver and Dunamu would restrict competition," the Financial Services Commission said in a written response to Rep. Lee Kang-ill of the ruling Democratic Party of Korea.
"Similarly, under the proposed Digital Asset Basic Act, we are considering safeguards to ensure that cryptocurrency exchanges, which serve as critical market infrastructure, maintain their public interest role and neutrality without being subject to undue influence from any particular company or shareholder," it added.
Last November, Naver Financial announced plans to make Dunamu a wholly owned subsidiary through a comprehensive share swap.
With the deal, Naver Financial aims to tap into new growth opportunities in digital assets. Dunamu would gain foundation to expand beyond its existing cryptocurrency exchange and integrate with Naver's financial and IT platform services.
The companies must secure several regulatory approvals to complete the share swap, including merger clearance from the FTC, approval of a change in Naver Financial's controlling shareholder and regulatory acceptance of a filing concerning a change in Dunamu's controlling shareholder.
The FTC has yet to reach a decision on the proposed merger. It is assessing whether the deal could stifle competition. Both Naver Financial and Dunamu hold dominant positions in their respective sectors, raising antitrust concerns.
Delays in legislative discussions over the Digital Asset Basic Act are also seen as complicating the regulatory approval process, as the proposed law is expected to have a significant impact on the merged entity's future operations.
As the regulatory review has dragged on, the two companies have postponed the share swap three times, first from June 30 to Sept. 30, then to Dec. 31, and most recently to March 31 next year.