Naver's payment arm to acquire South Korean crypto exchange operator in $10 billion deal

Core Viewpoint - Naver Financial has agreed to acquire Dunamu, operator of Upbit, South Korea's largest cryptocurrency exchange, in an all-stock deal valued at 15.13 trillion won ($10.27 billion) to secure future growth in digital assets [1][2]. Group 1: Acquisition Details - The acquisition involves Naver's fintech subsidiary issuing 2.54 shares for every one share of Dunamu [2]. - This deal is one of the largest in Asia for the year and aims to enhance Naver's growth in the booming cryptocurrency market [1][2]. Group 2: Market Position and Synergy - Upbit holds approximately 70% market share in South Korea's cryptocurrency exchange market and is highly profitable [3]. - Naver is expected to leverage its user traffic to drive engagement with Upbit, targeting primarily the younger generation [3]. Group 3: Market Reaction and Future Plans - Following the acquisition announcement, Naver's shares initially rose by over 7% but later fell by 4.2% due to concerns over a significant cryptocurrency withdrawal from Upbit [4][5]. - Naver's CEO indicated that there are no immediate plans for a Nasdaq listing, emphasizing a focus on enhancing shareholder value if such a decision is made in the future [4].