Naver and Dunamu Merger: Discovering the Future of Blockchain Finance Amidst a 15 Trillion vs 5 Trillion Valuation Gap

As of November 26, 2025, one of the most noteworthy announcements in the domestic IT industry is the merger of Naver and Dunamu. Yesterday (25th), both companies held board meetings to approve the merger plan, and today, Hae-jin Lee, Chairman of Naver, and Chi-hyung Song, Chairman of Dunamu, announced the merger plan at a joint press conference at Naver 1784. Personally, I believe this merger could be a significant turning point that goes beyond a simple corporate combination to potentially change the entire paradigm of the domestic digital finance ecosystem.

The first thing that stands out is the valuation gap between the two companies. Currently, Naver Financial is valued at approximately 5 trillion won, while Dunamu is valued at about 15 trillion won. Despite the threefold difference in corporate value, a 1:3 exchange ratio was proposed, indicating that Naver highly values Dunamu’s blockchain technology and the market dominance of its cryptocurrency exchange, Upbit. In fact, Dunamu recorded an annual revenue of 1.2 trillion won in 2021, showcasing the highest profitability among domestic fintech companies.

The core of this merger is undoubtedly the utilization of blockchain technology. The plan is to integrate the Korean won stablecoin issued through Dunamu’s top-tier blockchain infrastructure into the Naver Pay-based easy payment network, which I find to be a truly innovative attempt. Currently, Naver Pay processes approximately 3 trillion won in monthly transactions, forming a duopoly in the domestic easy payment market alongside Kakao Pay. The integration of stablecoins could enable a completely different dimension of financial services compared to the existing fiat currency-based payment systems.

Particularly noteworthy is the synergy effect in the e-commerce market. Naver Shopping’s annual transaction volume is about 25 trillion won, with over 700,000 Smart Store merchants. Introducing a blockchain-based payment system into this massive e-commerce ecosystem could enable transactions at much faster speeds and lower fees than traditional credit card or bank transfer methods. In fact, Dunamu’s Upbit maintains an average daily trading volume exceeding 2 trillion won, consistently ranking within the top 10 global cryptocurrency exchanges.

Strengthening Competitiveness in the Global Fintech Market

The most significant change anticipated from this merger is the potential for global market expansion. If Naver Financial’s plan to list on the NASDAQ in the U.S. is realized, it would be the first domestic fintech company to directly list on the U.S. stock market. The current global fintech market size is approximately 310 billion dollars (about 400 trillion won), with an annual growth rate exceeding 25%. Particularly, the blockchain-based financial services market is expected to grow to 67 billion dollars by 2025.

When compared to competitors, the significance of this merger becomes even clearer. While Kakao has established a financial ecosystem through Kakao Pay and Kakao Bank, it lags behind in blockchain technology. Kakao Pay’s estimated annual revenue for 2024 is about 450 billion won, which is less than half of Dunamu’s revenue. Meanwhile, Viva Republica, which operates Toss, is preparing for an IPO with a recent valuation of 8 billion dollars (about 10 trillion won), but has yet to fully venture into the cryptocurrency business.

Looking at overseas cases is even more intriguing. Coinbase in the U.S. exceeded a market capitalization of 100 trillion won when it listed on NASDAQ in 2021 and currently maintains around 50 trillion won. China’s Ant Group processes an annual transaction volume of 118 trillion won through Alipay, growing into the world’s largest fintech company. In this global competitive environment, the merger of Naver and Dunamu presents a crucial opportunity for domestic companies to secure the scale and technological capabilities needed to compete in overseas markets.

However, whether this merger proceeds smoothly remains uncertain. For the merger plan to pass, a special resolution at the shareholders’ meeting is required, needing the consent of at least two-thirds of the attending shareholders and one-third of the total issued shares. In Dunamu’s case, Chairman Chi-hyung Song and Vice Chairman Hyung-nyeon Kim hold about 60% of the shares, so it seems there won’t be significant issues. However, even though Naver Financial is wholly owned by Naver, the complex shareholder structure of the parent company, Naver, could present variables.

Regulatory Environment and Market Risks

Another crucial consideration is the regulatory environment. Cryptocurrency-related regulations in Korea still have many uncertainties. Although a legal framework was somewhat established with the Virtual Asset User Protection Act implemented in July 2024, there are still no clear guidelines regarding the issuance of stablecoins. Particularly, the Korean won stablecoin could be linked to the Bank of Korea’s Central Bank Digital Currency (CBDC) policy, meaning the business strategy could significantly change depending on the government’s policy direction.

The U.S. also has a complex regulatory environment. The SEC aims to classify most cryptocurrencies as securities, while the CFTC views them as commodities. With the start of the second Trump administration, there is growing anticipation for regulatory easing on cryptocurrencies, but actual policy changes may take time. Pursuing a NASDAQ listing amidst such uncertainties inevitably involves significant risks.

Market volatility is another factor that cannot be ignored. The cryptocurrency market exhibits much higher volatility than traditional financial markets. For instance, the price of Bitcoin dropped from 69,000 dollars in November 2021 to 15,500 dollars in November 2022, before recovering to around 95,000 dollars by the end of 2024. Such extreme volatility directly impacts Upbit’s trading fee revenue and could ultimately be a significant variable in the post-merger corporate valuation assessment.

Nevertheless, from a long-term perspective, I believe this merger is a highly strategic choice. The global digital payment market is expected to grow at an annual rate of over 20% by 2030, with the use of blockchain technology in the cross-border payment market rapidly increasing. The current international remittance market alone exceeds 800 trillion won annually, and if blockchain-based remittance services, which are much faster and cheaper than the existing SWIFT system, become commercialized, it could open up tremendous market opportunities.

Personally, I believe that if this merger succeeds, it will have a positive impact on the entire domestic fintech ecosystem. The combination of Naver’s platform power and Dunamu’s blockchain technology will compel existing financial institutions to develop more innovative services. In fact, major commercial banks like KB Kookmin Bank and Shinhan Bank have recently announced plans to expand their digital asset-related businesses, and I’ve heard that internet-only banks like Kakao Bank and Toss Bank are also considering adopting blockchain technology.

Ultimately, the Naver-Dunamu merger could be a crucial opportunity for Korea to leap forward as a global digital financial hub, going beyond a simple corporate combination. Although there are many challenges to address in the future, if both companies leverage their strengths to create synergy, I believe the results could be truly promising. Especially with the growing interest in digital assets among the younger generation, if innovative financial services that meet their needs emerge, the market landscape could completely change.

This article was written after reading the Naver and Dunamu to Officially Announce Merger at Joint Press Conference on the 27th article, adding personal opinions and analysis.

Disclaimer: This blog is not a news outlet, and the content reflects the author’s personal views. The responsibility for investment decisions lies with the investor, and no liability is accepted for investment losses based on the content of this article.