Naver Acquires South Korea’s Leading Crypto Exchange Upbit in Landmark Deal

South Korea's internet giant makes bold move into digital assets

THE GAME CHANGER

Naver just dropped a bombshell on the financial sector—acquiring Upbit, the country's dominant cryptocurrency exchange. This isn't just another corporate acquisition; it's a seismic shift that validates crypto's place in mainstream finance.

WHY THIS MATTERS

Upbit controls over 80% of South Korea's crypto trading volume. Naver's deep pockets and technological infrastructure could transform the exchange into a global powerhouse. Traditional banks are watching nervously as tech giants bypass their gatekeeping role.

THE BULLISH CASE

This acquisition signals institutional confidence at a time when regulators are finally warming to digital assets. Naver's entry brings legitimacy, scalability, and potentially millions of new users into the crypto ecosystem.

THE REAL TALK

Of course, the finance bros will claim they saw this coming—right after they finish explaining why they missed Bitcoin's last 200% rally. But make no mistake: when companies with Naver's clout start buying crypto infrastructure instead of just dipping toes, we're witnessing a fundamental restructuring of financial markets.

The old guard's moats are looking increasingly shallow as tech titans march into their territory.

Impact on Naver Financial

The acquisition also reshaped Naver Financial. The fintech arm, which had mainly handled payments, could start issuing money in the future, including its own won-based stablecoin. However, Naver WOULD first need regulatory approval under South Korea’s legal framework.

The country prepared its first legal framework for stablecoins under the second stage of the VIRTUAL Asset User Protection Act. In October, the Financial Services Commission submitted a government bill to the National Assembly, setting rules on issuance, collateral management, and internal controls for firms handling won-backed stablecoins.

After the share exchange, Naver’s stake in its fintech arm will fall from 70% to 17%, while Dunamu’s chairman, Song Chi-hyung, will technically hold the largest stake. Voting rights, however, will largely remain with Naver, allowing it to maintain control.

Regulatory changes

The crypto exchange market in South Korea has been beset with several regulatory changes. In August, the country’s Financial Services Commission instructed local cryptocurrency exchanges, including Upbit and Bithumb, to temporarily suspend their lending services due to legal uncertainties and investor risk.

However, in September, the government permitted cryptocurrency firms to qualify as venture companies and thus access tax incentives and financial support that had not previously been available to them. 

The deal will see Naver integrate Upbit into its fintech ecosystem, marking a key milestone in the convergence of traditional internet companies and digital finance in South Korea.

Also Read: Korea FIU Set to Impose Heavy Penalties on Crypto Exchanges