Hana Financial secures $668M investment for 6.55% ownership in Dunamu, Upbit's parent company
Following multiple cryptocurrency-related transactions over the past two months, the acquisition positions Hana Financial as Dunamu's fourth-largest shareholder, signaling its deepening commitment to the digital assets industry.
Hana Financial, one of South Korea's leading financial conglomerates, is purchasing an ownership stake in Dunamu, which operates the Upbit cryptocurrency exchange, marking its most recent foray into digital assets as part of a wider movement of conventional financial entities entering the cryptocurrency market.
According to a regulatory disclosure filed on Friday, Hana Financial revealed its purchase of more than 2.2 million Dunamu shares from Kakao Investment, an investment firm, representing approximately 6.55% of the company and valued at over 1.003 trillion Korean won ($668 million).
The 6.55% ownership position acquired from Kakao Investment positions Hana Financial as Dunamu's fourth-largest shareholder. According to a report published last September by South Korean publication The Chosun Daily, Dunamu's principal shareholders consist of chairman Song Chi-hyung holding 25.5%; Vice Chairman Kim Hyoung-nyon controlling 13.1%; Kakao possessing 10.6% and Woori Technology Investment maintaining 7.2%.
In its regulatory filing, Hana Financial stated the purchase aims to obtain "competitiveness in new finance through strategic equity investment." Simultaneously, Kakao submitted its own filing concerning the transaction, indicating it would retain 1.4 million shares while divesting the remainder to obtain "funds for future investments."
An increasing array of banking institutions and conventional financial organizations have begun entering the cryptocurrency space following years of cautious skepticism. In February, Mirae Asset Consulting, which operates as an affiliate of the South Korean multinational financial services corporation Mirae Asset Group, purchased a controlling ownership position in the cryptocurrency exchange Korbit.
During the earlier part of the year, Coinone, another exchange platform, disclosed it was considering the divestment of shares owned by its chairman, with domestic financial institutions and international exchanges reportedly expressing interest. Additionally, last year, Naver Financial, a South Korean technology company, reached an agreement to acquire Dunamu via a share swap arrangement, thereby bringing the Upbit operator into its corporate structure.
Hana Financial very active in crypto sector
The financial services group has demonstrated considerable activity within the cryptocurrency industry. In April, Hana Financial executed a three-way memorandum of understanding to develop a blockchain-powered remittance platform in partnership with POSCO International and Dunamu.
Additionally, during March, the company finalized an agreement with Standard Chartered Group of the United Kingdom to work together on global financial and digital asset markets, while also establishing partnerships with Circle, the issuer of USDC, and Crypto.com, a prominent US cryptocurrency exchange, to advance stablecoin-powered payment solutions for international tourists visiting South Korea.