Naver Makes a Bold Move in the Digital Asset Industry
Kicks Off the Won-Based Stablecoin Ecosystem
From Search and Commerce to Finance... Lee Haejin's Grand Vision Takes Shape
With Naver acquiring Dunamu, the operator of Upbit-one of the world’s top three to four virtual asset exchanges-industry observers interpret this as Naver founder and board chairman Lee Haejin making a bold move to compete in the global asset market. Lee, who previously held the title of Global Investment Officer (GIO), returned to the management frontlines earlier this year, and within just six months has made a major investment poised to reshape the market landscape. Naver is not merely investing in a virtual asset exchange; it is expected to integrate blockchain payment infrastructure across its entire ecosystem, which has expanded into search, commerce, and content. This signals that Lee’s global experiment with a “digital won” is set to accelerate in earnest.
According to the IT industry on September 26, Lee has focused on global investments since his return to management in March. In May, he established a new tech business division, followed by the launch of Naver Ventures in the United States in June and an investment in Twelve Labs. In August, Naver fully acquired the Spanish secondhand trading platform Wallapop, and this month, it purchased a stake in Kurly.
Industry insiders view the incorporation of Dunamu as a crucial piece in completing Naver’s global financial ecosystem. If Naver Financial acquires Dunamu, a seismic shift is expected in the domestic fintech (finance + technology) and digital asset industries. Naver Pay, operated by Naver Financial, is the leading online simple payment service in Korea, with annual transaction volume reaching 80 trillion won, while Upbit is the number one virtual asset exchange in Korea and ranks third or fourth globally. Previously, Naver Pay took the first step in collaboration by acquiring “Securities Plus Unlisted,” an unlisted stock trading platform operated by Dunamu.
Lee is expected to experiment with the global circulation of a won-based stablecoin issued by Naver Financial, with Dunamu providing the blockchain technology. Upbit will handle the distribution and remittance of the stablecoin, and both companies are likely to simultaneously invest in fintech and artificial intelligence (AI) startups and pursue global expansion.
Dunamu, which owns Upbit, possesses blockchain (distributed ledger) technology, while Naver Pay, operated by Naver Financial, has a simple payment network that spans both online and offline channels. With various services such as Naver Shopping, Plus Store, Webtoon, Reservation, and Chzzzik integrated with payments, there is strong potential to build a robust won-based stablecoin ecosystem.
Stablecoins are linked to fiat currencies like the dollar or won, resulting in low price volatility. The reason global big tech companies are paying attention is simple: securing a stable and universal payment method within their platforms allows them to dominate financial infrastructure as well.
Global big tech firms similar to Naver are also accelerating their investments in stablecoins. Meta attempted to build a global unified payment network with its “Diem” stablecoin project in 2019 but withdrew due to regulatory hurdles; however, there are now signs of renewed efforts. Apple and Google have also considered integrating stablecoins into Apple Pay and Google Wallet, respectively. Although progress has been slow due to regulatory barriers, these companies have not abandoned stablecoins because the integrated value of payment data and financial data is immense.
Lee also regards “payment” as the final piece in Naver’s ecosystem, which has expanded into shopping, content, search, and cloud. If Naver Pay, Korea’s number one simple payment service, adopts a won-based stablecoin, it could become the key to supporting global expansion.
A Naver representative stated, “Since his return, Chairman Lee Haejin has been leading challenges and changes, seeking new growth opportunities,” adding, “To strengthen global competitiveness, Naver is rapidly advancing its business and pursuing sustainable growth through a diverse portfolio.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
