What happened? Dunamu’s proposed merger with Naver is being talked about but it faces five major legal and regulatory hurdles.
The two companies have been linked in talks to combine Naver’s payment and tech reach with Dunamu’s Upbit crypto exchange, which dominates about 72% of South Korea’s crypto market. A South Korean paper identified five key obstacles — from traditional finance rules and stablecoin legislation to conflict-of-interest limits, stock market protections, and governance questions. Those legal and policy uncertainties mean the deal is far from a done deal and would need regulatory changes or creative workarounds to move forward.
Who does this affect? Consumers, banks, fintechs, regulators, shareholders and the broader crypto ecosystem are all on the hook.
Upbit users and Naver Pay customers could see new payment and crypto products if the merger succeeds, while banks and fintech firms would be directly affected by any changes to who’s allowed to issue stablecoins. Regulators and politicians will need to weigh in on guidelines that currently limit traditional finance firms from crypto activities, and minority shareholders in both firms could push back over any restructuring or listings. International exchanges and rival crypto platforms would also feel the ripple effects if a combined Naver-Dunamu entity reshapes domestic market access or stablecoin issuance rules.
Why does this matter? A successful merger could reshape payment rails, boost stablecoin use, and move market power — but legal limits could blunt those gains and create investor risk.
If Naver and Dunamu pull it off, a KRW-pegged stablecoin plus Naver’s massive user base could accelerate crypto payments and give the pair a huge edge in Korea’s digital payments market. But rules barring exchanges from listing tokens they or affiliates issue, plus central bank preferences for bank-led stablecoin issuance, could limit the combined firm’s ability to monetize that advantage and reduce the strategic value of the merger. The uncertainty also creates stock-market risk — potential shareholder suits, valuation swings, and complicated listing plans could all affect investor confidence and the broader crypto and fintech markets.