Naver Financial, the fintech arm of South Korea’s largest search engine, is currently exploring a potential partnership with Dunamu, the operator of the popular cryptocurrency exchange Upbit. While initial reports suggested that the talks had progressed towards a merger, Naver’s regulatory filing clarified that no binding terms have been confirmed at this stage.
The disclosure, submitted to the Financial Supervisory Service, revealed that Naver and Dunamu are considering various forms of collaboration. These include a potential share-swap agreement, the development of a won-pegged stablecoin project, and the introduction of unlisted stock trading services. Naver’s CFO, Hee Cheol Kim, emphasized that specific details will be announced within a month or once a formal agreement is reached.
Potential benefits for South Korea’s crypto ecosystem are significant if Naver and Dunamu proceed with a partnership. A report from Tiger Research suggested that such a collaboration could reshape the country’s digital asset economy, likening it to a scenario where Google acquires Coinbase, a leading crypto exchange. This indicates a profound impact on how cryptocurrencies could be integrated into mainstream finance and technology.
If Naver integrates Upbit’s blockchain infrastructure, the partnership could accelerate the adoption of digital payments nationwide. Naver Pay, which already serves over 30 million users and handles significant shopping transactions annually, could benefit from the introduction of a won-backed stablecoin. This move would reduce card processing costs, streamline settlements, and attract a large number of crypto investors into Naver’s payment ecosystem.
For Dunamu, the potential partnership with Naver offers scalability and utility. The company recently introduced GIWA Chain, an Optimism-based Layer 2 network aimed at expanding its role from a mere exchange operator to a blockchain infrastructure provider. Collaborating with Naver could open up new revenue streams from stablecoin usage and transaction fees, while simplifying user onboarding processes.
Moreover, by leveraging Naver’s mobile ID service, Upbit could streamline its time-consuming identity verification processes, making it easier for Naver’s 40 million monthly users to sign up. This could significantly boost Upbit’s user growth rate, as it currently has 10 million registered users.
Beyond financial benefits, the potential partnership could also impact culture and capital markets. Naver Webtoon, a platform that generated $1.35 billion in revenue in 2024 and has partnerships with major entertainment companies like Disney and Marvel, could utilize blockchain technology to tokenize intellectual property, enhance creator transparency, and launch community-driven token economies.
Overall, the collaboration between Naver and Dunamu holds immense potential for transforming South Korea’s crypto ecosystem and paving the way for innovative financial solutions and cultural developments.