Korean Regulators Weigh Competition Safeguards for Naver-Dunamu Merger

South Korean regulators are considering safeguards against excessive market influence as they review Naver Financial’s proposed acquisition of Dunamu, operator of the Upbit cryptocurrency exchange. The scrutiny adds to uncertainty around one of the country’s most closely watched financial-technology transactions.

The Financial Services Commission said in a written response to ruling Democratic Party lawmaker Lee Kang-ill that the Fair Trade Commission is examining whether the combination could restrict competition. Financial authorities are also considering provisions under the proposed Digital Asset Basic Act intended to preserve the public-interest role and neutrality of cryptocurrency exchanges and protect them from undue influence by a particular company or shareholder.

Naver Financial announced in November 2025 that it planned to make Dunamu a wholly owned subsidiary through a comprehensive share swap. The combination would bring together Naver’s financial and information-technology services with Dunamu’s digital-asset business, giving the companies a platform to pursue new growth opportunities. It would also unite businesses that already hold strong positions in their respective markets, placing market concentration and governance at the center of the regulatory review.

Several approvals are required before the transaction can be completed. These include merger clearance from the Fair Trade Commission, approval for a change in Naver Financial’s controlling shareholder, and regulatory acceptance of a filing related to a change in Dunamu’s controlling shareholder. The competition regulator has not yet issued a decision.

The review is unfolding while lawmakers continue to discuss the Digital Asset Basic Act. The proposed legislation is expected to shape the operating framework for cryptocurrency exchanges and could materially affect the merged company’s future activities. That unresolved legal framework has become another source of complexity for regulators assessing the transaction.

The delays have already forced the companies to revise their timetable repeatedly. The share-swap deadline was first moved from June 30 to September 30, then to December 31. It has now been postponed for a third time, to March 31, 2027.

The case highlights the challenge facing South Korean policymakers as large technology and finance platforms expand into digital assets. Regulators must weigh the potential benefits of combining financial, technology and cryptocurrency services against concerns that a powerful integrated group could exert too much influence over critical market infrastructure. The eventual decision may therefore help set expectations for future consolidation in Korea’s digital-finance sector.