The proposed merger between Naver and Dunamu, the operator of Upbit, is projected to generate annual profits of $2.1 billion, according to industry experts. South Korean media reports indicate that the merger could result in KRW 3 trillion in consolidated operating profits, creating a 'mega company' in the process. However, the merger faces significant regulatory challenges, with five major legal obstacles still unresolved.
Jang Ho-yoon, a researcher at Korea Investment & Securities, highlighted that the merger would enable Naver to expand fully into the crypto industry, leveraging synergies with stablecoins and its existing fintech services. Naver Financial, a Naver subsidiary, already operates banking and e-payment platforms and plans to merge with Dunamu, which holds over 70% of South Korea's crypto trading market. The merger is also expected to boost crypto trading activity as the U.S. enters a rate-cut cycle and blockchain businesses like stablecoins gain momentum in Korea.
Naver-Dunamu Merger Aims for $2.1 Billion Annual Profits Amid Regulatory Hurdles
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