Blood Ties Unraveled: Inside the Naver-Dunamu Merger Saga

October 20, 2025

Naver–Dunamu Deal: A Partnership Built on Trust and a Vision for Web3

Seoul, South Korea – A groundbreaking alliance between tech giant Naver and cryptocurrency exchange Dunamu has sent shockwaves through the South Korean Data and Communication Technology (ICT) sector. The deal, which integrates Dunamu as a subsidiary of Naver Financial, is fueled by a deep-seated trust between Naver Chairman Lee Hae-jin and Dunamu Chairman Song Chi-hyeong, and a shared ambition to reshape the digital finance landscape.

The Foundation of Trust

According to a high-ranking Naver executive, the relationship between lee and Song extends beyond mere professional courtesy. The source described a bond so strong, it’s akin to a “mixing of blood,” signifying an extraordinary level of mutual confidence. This level of trust proved pivotal in facilitating the complex negotiations and ultimately securing the agreement.

Why This Deal Now?

The motivations behind this strategic maneuver are multifaceted. Questions abound regarding Naver’s move to embrace Dunamu, especially concerning the potential to revitalize the market for Korean Won (KRW) stablecoins and the implications for industry regulation. Equally intriguing is the question of why Song, already enjoying significant financial success with Dunamu, would align his firm with Naver.

Speculation has even arisen regarding a potential succession plan, with some suggesting Lee is grooming Song to eventually lead naver. This has ignited considerable discussion among industry analysts and observers.

Naver’s Strategic Gamble & Web3 Focus

Lee’s decision to link Naver with Dunamu represents a calculated risk, notably given the regulatory hurdles that have long plagued the digital asset space.It signals Naver’s commitment to Web3 technologies and its intention to proactively address the complex regulatory environment. According to recent data from Statista,global Web3 investment reached $89.6 billion in 2023, demonstrating the growing importance of this sector. [Statista – Web3 Funding]

Song Chi-hyeong: From Librarian to Tech Leader

Song Chi-hyeong’s journey from a developer with a background in library science to the Chairman of Dunamu is remarkable. His success in building Dunamu into a highly profitable enterprise, largely through transaction fees from the Upbit exchange, has earned him recognition as a visionary leader. Dunamu’s operating profit surpasses 70% of its sales, a phenomenal margin that dwarfs the typical 3-7% seen in manufacturing and the 7-15% average of the broader IT industry.

The deal was reportedly facilitated by a well-connected figure within the ICT industry who nurtured a relationship between Lee and Song.

Profitability Comparison

company	Operating Profit Margin
Dunamu	>70%
Krafton	>40%
Average Manufacturing Industry	3-7%
average IT Industry	7-15%

Did You Know? Dunamu’s Upbit consistently ranks among the world’s leading cryptocurrency exchanges,handling billions of dollars in daily trading volume.

pro Tip: Keep a close watch on regulatory developments in South Korea, as they will considerably impact the future of the Web3 space.

The future of Digital Finance in South Korea

This partnership between Naver and Dunamu represents a pivotal moment for the digital finance sector in South Korea. The combined strengths of both companies position them to shape the future of Web3 innovation and perhaps influence regulatory frameworks. The success of this venture will likely hinge on navigating the evolving regulatory landscape and fostering public trust in digital assets.

Frequently Asked Questions

• What is the primary driver behind the Naver-Dunamu deal? The deal is driven by a strong trust relationship between the two chairmen and a shared vision for Web3 innovation.
• How profitable is Dunamu? Dunamu boasts an exceptionally high operating profit margin, exceeding 70% of its sales.
• What role will Song Chi-hyeong play within Naver? While a formal role hasn’t been defined, speculation suggests a potential leadership position within Naver.
• What impact could this deal have on the KRW stablecoin market? The partnership could pave the way for the development and wider adoption of KRW stablecoins.
• Is this deal likely to face regulatory scrutiny? Given the sensitive nature of the digital asset space, the deal will undoubtedly attract considerable regulatory attention.
• What is Web3 and why is Naver interested in it? Web3 represents the next generation of the internet, emphasizing decentralization and user ownership. Naver sees significant growth potential in this emerging technology.
• What are the potential benefits of this partnership for consumers? The partnership could lead to the development of innovative financial products and services.

what are your thoughts on this alliance? Do you believe this will spur further innovation in the digital finance sector in South Korea? Share your opinions in the comments below!

What are the key regulatory concerns driving the use of a Special Purpose Company (SPC) in the Naver-Dunamu merger?

The Genesis of a Tech Powerhouse: Naver & Dunamu

The proposed merger between South Korean tech giant Naver adn its largest shareholder, Dunamu, the operator of leading cryptocurrency exchange Upbit, has sent ripples through the nation’s business and tech landscapes. This isn’t simply a corporate consolidation; it’s a complex interplay of ambition, regulatory scrutiny, and the evolving future of digital finance. Understanding the Naver Dunamu merger requires delving into the history of both companies and the strategic rationale behind this bold move.

Naver, often dubbed the “Korean Google,” dominates the South Korean search engine market and boasts a diverse portfolio including webtoons, online shopping, and cloud services. Dunamu, while less publicly known, holds notable power through Upbit, which consistently ranks among the world’s top cryptocurrency exchanges by trading volume. The Naver Upbit connection began with Naver’s early investment in Dunamu, ultimately leading to a ample ownership stake.

The core of the Deal: A special Purpose Company (SPC)

The merger isn’t a direct acquisition. Instead,Naver proposed creating a Special Purpose Company (SPC) – a holding company – to absorb both naver and Dunamu. This structure is crucial for navigating South Korean regulations surrounding cryptocurrency businesses.

Here’s a breakdown of the proposed structure:

* Naver & Dunamu Integration: Both companies would become subsidiaries of the newly formed SPC.

* Shareholder Structure: Existing Naver shareholders would hold approximately 63% of the SPC, while dunamu shareholders would control around 37%.

* Strategic Focus: The SPC aims to leverage Naver’s technological prowess and user base with Dunamu’s expertise in the digital asset space. This includes plans for a Web3 platform and expansion into global markets.

* regulatory Compliance: The SPC structure is designed to address concerns from the Financial Services Commission (FSC) regarding the potential risks of a direct merger involving a cryptocurrency exchange.

Regulatory Hurdles and Public Backlash: The Road to Approval

The Naver Dunamu merger approval process has been far from smooth. The initial proposal faced significant opposition from minority shareholders who argued the deal undervalued Naver and unfairly benefited Dunamu’s stakeholders. Concerns centered around:

* Valuation Discrepancies: Critics claimed the valuation used for Dunamu was inflated, potentially diluting the value of Naver shares.

* Governance Issues: Questions were raised about the influence Dunamu’s founder, Song Chi-hyung, would wield within the new structure.

* Cryptocurrency Risk: Some investors expressed apprehension about Naver becoming heavily exposed to the volatile cryptocurrency market.

* Fairness to Shareholders: Minority shareholders demanded a fairer exchange ratio and greater clarity in the deal-making process.

These concerns led to legal challenges and public protests, forcing Naver to revise its proposal multiple times. The FSC scrutiny also intensified, focusing on potential conflicts of interest and the need to protect investors.

The Impact on the Korean Crypto Landscape

The triumphant completion of this merger – assuming it gains final approval – will dramatically reshape the South Korean cryptocurrency market.

* Increased Legitimacy: Naver’s involvement could lend greater credibility to the crypto industry in South Korea, which has historically faced regulatory uncertainty.

* Mainstream Adoption: Integrating crypto services into Naver’s existing platforms could accelerate the adoption of digital assets among a wider audience.

* Innovation in Web3: The SPC is expected to invest heavily in Web3 technologies,including blockchain,NFTs,and the metaverse,potentially positioning South Korea as a leader in this emerging space.

* Competition Intensification: The merger could trigger a wave of consolidation within the Korean crypto exchange market, as smaller players struggle to compete with the combined power of Naver and Upbit.

Key Players and Their Roles

understanding the key individuals involved is crucial to grasping the dynamics of this saga:

* Lee Hae-jin (Naver): As the founder and global investment officer of Naver, Lee Hae-jin has been a driving force behind the merger.

* Song Chi-hyung (Dunamu): The founder and CEO of Dunamu, Song Chi-hyung stands to gain significant influence within the new SPC.

* Financial Services Commission (FSC): The South korean financial regulator plays a critical role in approving or rejecting the merger, ensuring compliance with existing laws and protecting investor interests.

* Minority Shareholders: their collective voice has been instrumental in shaping the terms of the deal and demanding greater transparency.

The Future of the SPC: Beyond Cryptocurrency

While the initial focus is on integrating Dunamu’s crypto exchange, the long-term vision for the SPC extends far beyond digital assets. Naver envisions leveraging its technology and user base to create a comprehensive digital ecosystem.

Potential areas of expansion include:

* AI-Powered Services: Integrating artificial intelligence into Naver’s existing platforms and developing new AI-driven applications.

* Cloud Computing: Expanding Naver Cloud’s market share