Naver is preparing to enter the digital finance market, including stablecoins, by incorporating Dunamu, the operator of Upbit, as a subsidiary. The combination of the country's top virtual asset exchange and a simple payment platform is expected to cause a significant shift in the financial and coin industries.

According to related industries on the 25th, Naver plans to conduct a comprehensive stock exchange to fully incorporate Dunamu as a subsidiary through its fintech subsidiary, Naver Financial. Both companies are expected to hold board meetings soon to approve the stock exchange agenda. A comprehensive stock exchange means acquiring all shares of another company to secure 100% equity.

Naver Financial, a subsidiary of Korea's largest portal Naver, oversees the financial business of the Naver Group. With an annual payment volume of KRW 80 trillion, it has established itself as a comprehensive financial platform company, covering everything from simple remittances and loans to insurance, securities, and real estate, centered on Naver Pay. Dunamu operates 'Upbit,' the No. 1 virtual asset exchange in Korea and the 4th largest globally.

The industry is paying attention to the seismic shift that the combination of these two companies will bring to the domestic digital industry. In particular, it is expected that the establishment of a Korean won stablecoin ecosystem could accelerate.

If Naver Financial and Dunamu, which possesses blockchain technology, issue a Korean won stablecoin, Upbit could be utilized as a key distribution channel for the Korean won stablecoin. This structure is similar to how dollar-based stablecoins like Tether and Circle are distributed around the virtual asset exchange Coinbase. Naver's payment and commerce infrastructure, with an annual volume of KRW 80 trillion, can expand the use cases and create demand for stablecoins. Naver and Dunamu have already announced in July this year that they would strategically cooperate to enter the Korean won-based stablecoin business.

The market sees sufficient growth potential for the Korean won stablecoin. Mirae Asset Securities projected that if the issuance of the Korean won stablecoin becomes a reality, its issuance volume could grow to KRW 5 trillion by 2030, capturing a market share of 52%. Mirae Asset also estimated that the introduction of stablecoins could save Naver Financial KRW 145 billion in card and VAN company payment fees by 2030.

Both companies are expected to make large-scale investments in fintech and artificial intelligence (AI) startups and actively seek overseas expansion. The scale of the technology ecosystem investment envisioned by Naver, Naver Financial, and Dunamu is known to be tens of trillions of KRW over 10 years.

As the market values Dunamu's corporate value higher than Naver Financial's, there is interest in the merger ratio. According to the securities industry, Naver Financial is valued at KRW 4 trillion to KRW 7 trillion, while Dunamu is valued at well over KRW 10 trillion. If incorporated as a subsidiary through a comprehensive stock exchange, Naver Financial is expected to issue new shares to Dunamu shareholders, and Naver Financial will acquire all shares held by existing Dunamu shareholders. Currently, the largest shareholder of Dunamu is Chairman Song Chi-hyung (25.53%).

Meanwhile, as news of Naver's move to incorporate Dunamu as a subsidiary spread, Naver's stock price closed at KRW 254,000, up 11.4% from the previous trading day. Meanwhile, Dunamu's stock price, traded on the unlisted stock trading platform Securities Plus Unlisted, fell by more than 10%.

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