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On September 25, Naver Financial Corp. (Naver Pay), a leading South Korean digital payments provider, announced plans to acquire a 100% stake in Dunamu Inc. through a comprehensive share swap. Dunamu operates Upbit, South Korea’s largest cryptocurrency exchange, boasting 5.68 million users and generating annual operating profit exceeding 1 trillion won ($845 million).
While the exact share swap ratio has yet to be finalized, market estimates based on 2024 asset figures—Dunamu at approximately 15.3 trillion won ($12.9 billion) and Naver Financial at around 3.9 trillion won ($3.3 billion)—suggest Dunamu shareholders will receive three to four Naver Pay shares for each Dunamu share held.
Applying this ratio, Naver Pay will formally own 100% of Dunamu. However, Song Chi-hyung, Dunamu’s largest shareholder, is expected to become the single largest shareholder of Naver Pay, surpassing Naver Corp., South Korea’s top internet company. Effectively, this structure positions Dunamu as the de facto acquirer of Naver Pay.
Further mergers or additional share swaps between Naver Pay and Naver Corp. could enable Song Chi-hyung to secure a stake in Naver itself, potentially altering Naver’s ownership structure. This raises the possibility of Song succeeding Lee Hae-jin, Naver’s founder and current chairman, as the group’s next leader.
Strategic Bet by Naver—Even at the Cost of Ownership Change
Naver’s revenue from search services has declined from 53% in 2020 to 37% in 2024, amid intensifying competition from global platforms such as Google, YouTube, and ChatGPT. Naver Shopping’s growth has also slowed since 2024, with negative year-on-year growth recorded in January 2025.
Lee Hae-jin, who has long contemplated Naver’s long-term survival, appears willing to relinquish his position as major shareholder to transform Naver into a global Web 3.0 leader. Lee and Song, both alumni of Seoul National University’s computer engineering department, are known to have a close relationship. The original plan was a direct share swap between Naver and Dunamu, but practical challenges led to the current arrangement via Naver Pay. Should Lee retire, Song—12 years his junior—could become chairman of Naver Group’s board.
Dunamu Unveils Proprietary Blockchain GIWA
The integration of South Korea’s top digital payments provider and its leading (and the world’s fourth-largest) cryptocurrency exchange is expected to accelerate the use of crypto payments in commerce, expand business through stablecoin issuance and distribution, and more. On September 9, at the Upbit D Conference 2025 (UDC 2025), Dunamu unveiled its proprietary Ethereum-based Layer 2 blockchain, GIWA. Upbit announced plans to develop and operate the GIWA mainnet, and introduced ‘GIWA Wallet,’ a self-custody crypto wallet service integrated with the GIWA chain.
Globally, Binance operates the BNB Chain and Coinbase runs the Base Chain; Upbit is following this trend. Exchanges with their own mainnets are evolving into comprehensive financial infrastructure firms, offering blockchain services, wallets, and custody solutions. Dunamu aims to build this digital financial infrastructure, while Naver will provide consumer access and convenience—enabling users to experience crypto payments in daily life.
Japan’s PayPay Acquires 40% Stake in Binance Japan
On October 9, a similar major deal was announced in Japan. PayPay, the country’s largest digital payments provider with 70 million app users and controlled by SoftBank through a multi-layered holding structure, acquired a 40% stake in Binance Japan, becoming a key shareholder. LY Corporation, which operates Yahoo Japan and the LINE messenger app, co-owns PayPay with SoftBank.
PayPay is credited with accelerating Japan’s shift to digital payments and has expanded into financial services, including banking, credit cards, and securities, allowing users to manage spending, payments, loans, and investments within its platform.
Binance Japan, a local subsidiary of Binance, entered the market by acquiring Sakura Exchange Bitcoin in late 2022 and has operated under the supervision of Japan’s Financial Services Agency (FSA) since August 2023. However, the dominant crypto exchanges in Japan remain bitFlyer, CoinCheck, and bitbank, with Binance Japan’s market share still limited.
The PayPay-Binance Japan partnership marks a strategic turning point for both firms, granting Binance Japan access to PayPay’s vast user base. Should stablecoin trading become more active, the exchange could see a significant boost in trading volume and revenue.
PayPay, meanwhile, is diversifying into digital asset management and blockchain, reinforcing its position as a comprehensive financial super app. Users will be able to purchase cryptocurrencies with PayPay Money and withdraw funds directly to their app accounts.
Mergers between crypto exchanges and digital payments firms are likely to intensify competition for existing Japanese exchanges like bitFlyer and CoinCheck, prompting them to seek similar strategic partnerships. Japanese banks and financial institutions are also expected to accelerate innovation and integration strategies to maintain their competitive edge against fintech and crypto firms.
Stablecoin Trading Could Reshape Traditional Financial Landscape
This trend carries significant implications for South Korean financial institutions. As stablecoin trading becomes more widespread, areas traditionally dominated by banks—such as remittances, payments, and foreign exchange—could rapidly shift to fintech and crypto companies.
Despite ongoing market volatility driven by unpredictable US tariff negotiations and government shutdown risks, the US remains committed to establishing itself as the world’s leading blockchain nation. In July, the US Congress passed the “Genius Act,” a stablecoin regulatory bill, fueling a surge in DeFi yield-generating stablecoin issuance and driving both quantitative and qualitative growth in the stablecoin market.
In Japan, JPYC became the first company in August to obtain a government license to issue stablecoins as a funds transfer business. Under the revised Payment Services Act effective from 2023, only banks, trust banks, and licensed remittance firms can issue stablecoins in Japan. Without such a license, non-banks were previously barred from issuing stablecoins; JPYC’s August approval marks a first.
In the US, the Genius Act allows not only banks but also federally licensed non-bank firms to issue stablecoins, provided they meet reserve and other requirements.
Going forward, the synergy between crypto and payments firms is expected to expand as stablecoin use becomes mainstream. Government support and regulatory frameworks in the US and Japan are creating new growth opportunities for the crypto industry.
While the financial market environment grows increasingly complex, the blockchain and crypto sectors are opening new avenues for growth. Given the rapid pace of change, South Korea must not miss out on these emerging opportunities.
(Mi-seon Lee, former Head of Research, Hashed Open Research)
ywshin@yna.co.kr
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