Regulatory hurdles force Naver to postpone Dunamu acquisition by three months
The share exchange agreement between Naver Financial and Dunamu faces a three-month postponement amid ongoing regulatory scrutiny and weakening profitability at the Upbit cryptocurrency platform.
Naver Financial, a major South Korean financial technology company, has extended the deadline for its anticipated share exchange arrangement with Dunamu, which operates the Upbit cryptocurrency trading platform, based on regulatory documents submitted on Monday.
According to documentation filed with the Financial Supervisory Service (FSS), the financial services provider now anticipates conducting a shareholder meeting on Aug. 18 with a projected closing date of Sept. 30, representing approximately a three-month extension beyond the previously established targets of late May or early June.
The initial disclosure of Naver Financial's acquisition intentions regarding Dunamu emerged in September 2025, when domestic media outlets Yonhap and Chosun published reports indicating the corporation was structuring a share exchange to incorporate the Upbit platform operator into its portfolio. Subsequently, the enterprise validated the arrangement through a Nov. 26 regulatory submission, detailing an approximately $10.3 billion transaction structured entirely in stock.
This strategic move represents Naver Financial's broader initiative to incorporate Dunamu into its corporate structure as a fully controlled subsidiary. The consolidation would merge one of South Korea's largest financial technology ecosystems with the nation's dominant cryptocurrency exchange operator, establishing one of the most significant crypto-finance mergers in the country's history.
Digital Asset Basic Act could affect the deal's outcome
The FSS documentation submitted by Naver Financial further specified that the acquisition continues to require various regulatory clearances connected to significant ownership changes and corporate merger examinations.
According to Naver's statement, the deal faces potential additional postponements or possible termination contingent upon the advancement of approval procedures.
The company additionally noted that ongoing deliberations surrounding South Korea's forthcoming Digital Asset Basic Act may influence both the schedule and final resolution following the law's implementation.
The Digital Asset Basic Act under consideration in South Korea represents a comprehensive second-generation cryptocurrency regulatory framework designed to expand beyond existing consumer protection measures and establish an extensive governance structure for digital asset operations. Legislative authorities anticipate introducing this framework during the initial six months of 2026.
Dunamu profit declines as crypto trading volumes fall
The extended deadline emerges alongside Dunamu's disclosure of weakening operational results, with both revenue streams and profitability experiencing contractions throughout 2025 against a backdrop of diminished cryptocurrency market engagement.
Based on the company's yearly financial statement submitted to the FSS, Dunamu recorded revenues totaling approximately 1.56 trillion won (around $1 billion), representing a 10% year-on-year decrease. The firm's operating profit experienced a 26.7% contraction to 869.3 billion won (around $573.3 million), whereas net profitability declined 27.9% to 708.9 billion won (around $467 million).
Dunamu's management cited diminished transaction volumes throughout a comprehensive cryptocurrency market downturn as the primary factor behind these declining financial metrics.
Data from analytics provider 10x Research indicates that cryptocurrency trading volumes have recently dropped to levels not observed since 2022, with aggregate weekly transaction volume decreasing approximately 7% below historical averages and blockchain activity metrics including Ethereum transaction fees reflecting muted market participation.
