Naver to Acquire South Korea's Largest Crypto Exchange

South Korea's groundbreaking developments in the digital economy continue. The country's internet giant Naver is preparing to take an important step to acquire local cryptocurrency exchange Upbit. According to local media outlet Donga Ilbo, Naver's financial arm Naver Financial will carry out a comprehensive share swap with Dunamu, the owner of Upbit.

After this deal, Dunamu will become a 100 percent subsidiary of Naver Financial. However, the process will work like a traditional merger; both companies will remain legally independent. Naver and Dunamu have reportedly set up special task force teams to finalize this deal. According to the plan, Naver Financial will issue new shares and distribute them to Dunamu shareholders.

While there has been no official comment from Dunamu, the company is currently "in the process of verifying the information". In this period of rapid development of crypto regulations, this step taken by Naver is considered a very strategic move. Founded in 1999, Naver operates the country's largest search engine and offers a range of financial products such as payment system Naver Pay, credit, insurance and investment services.

The merger with Upbit will allow Naver to integrate a strong crypto infrastructure into its existing financial services. Both Naver and Upbit's influence in the crypto market will increase with this deal. This development also coincides with the accelerating crypto regulations in South Korea. The government is preparing to legalize the won stablecoin market, which is pegged to the local currency.

The ruling Democratic Party announced on Wednesday that it would establish a digital asset task force and aim to pass a stablecoin law by the end of the year. Naver's acquisition of Upbit is seen as a strategic preparation ahead of crypto regulations. This step will strengthen the company's balance sheet and help it align more strongly with South Korea's vision of a stablecoin-driven digital economy.