As the possibility of Dunamu, operator of South Korea's largest virtual asset exchange Upbit, becoming a second-tier subsidiary of Naver draws intense market attention, securities analysts have been issuing positive evaluations regarding the potential combination of the two companies.
Lee Hyojin, a researcher at Meritz Securities, released a report on September 26 and stated, "Although Naver announced through a disclosure that the details have not yet been finalized, the direction seems clear. The market consensus is that Naver will exhaust all of its cash holdings by the end of the year. If the funds are to be spent anyway, acquiring Dunamu, which would enable expansion into digital assets, is considered the best-case scenario."
The previous day, media reports revealed that Dunamu is quietly pursuing a comprehensive stock swap with Naver Financial, Naver's unlisted subsidiary. This would result in Dunamu being incorporated as a second-tier subsidiary of Naver. Earlier, on September 11, Naver Pay acquired Securities Plus Unlisted, an unlisted stock platform operated by Dunamu.
Industry experts believe that the combination of Dunamu, which owns Upbit-the world's third-largest virtual asset exchange-and Naver Financial, South Korea's leading fintech company, would create an entity capable of competing with global fintech giants. Specifically, there is speculation that if Naver Pay issues a Korean won stablecoin, Dunamu would support the initiative with its blockchain technology, and Upbit would handle the listing and distribution of the stablecoin.
Researcher Lee noted, "The integration of Dunamu should not be viewed merely as revenue recognition from virtual asset transactions, but rather as an opportunity to expand digital asset businesses such as real-world asset tokens (RWA) and stablecoins. Theoretically, Mirae Asset Group, which holds a stake in Naver Financial, could participate in both traditional securities trading and RWA tokenization, with Dunamu distributing these assets."
With the legislative process for Korean won stablecoins approaching, financial institutions are rushing to file trademark applications, and expectations are mounting that Naver will gain a first-mover advantage in the early stablecoin market. Oh Donghwan, a researcher at Samsung Securities, commented, "It is possible to issue stablecoins on Dunamu's blockchain platform 'Kiwa Chain' and use them as a payment method at Naver Pay's online and offline merchants. If the deal goes through, Naver can expect not only a first-mover advantage in the domestic won-denominated stablecoin market, but also the benefit of incorporating several trillion won in revenue generated by Dunamu."
Last year, Dunamu recorded sales of 1.73 trillion won, operating profit of 1.19 trillion won, and net profit of 983.7 billion won. During the same period, Naver Financial posted sales of 1.65 trillion won, operating profit of 103.5 billion won, and net profit of 162.3 billion won.
Analysts also suggest that the combination of the two companies could accelerate the emergence and activation of the Korean won stablecoin market. As seen in partnerships such as Tether and Binance or Circle and Coinbase, one of the key factors for the initial activation of stablecoins is the distribution capacity provided by digital asset exchanges. Both Dunamu and Naver Financial are considered to possess this capability.
Park Hyunwoo, a researcher at Shinhan Investment Corp., stated, "If platforms and distribution companies with large customer bases issue their own stablecoins and actively provide incentives, initial activation will become much easier. As the scale of stablecoin payments and settlements expands, payment companies responsible for distribution networks are expected to benefit. In addition, as more competitive issuers enter the market, attention should also be paid to companies that provide stablecoin issuance solutions in the form of software-as-a-service (SaaS)."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
