Naver-Dunamu Deal Faces Regulatory Hurdles Over Ownership Rules
Naver Financial's proposed acquisition of Dunamu, operator of South Korea's largest cryptocurrency exchange Upbit, may face regulatory hurdles due to conflicting ownership rules. According to a report by the National Assembly Research Service, Naver Financial's current stake in Dunamu exceeds the Fair Trade Act's 50% floor for unlisted subsidiaries.
The research service found that if Naver Financial converts into a holding company after the acquisition, it could trigger a ceiling on major shareholder stakes in virtual asset exchanges under future digital-asset legislation. This conflict between the Fair Trade Act and the Framework Act on Digital Assets has been highlighted as a potential issue for Naver Financial's corporate structure.
The National Assembly Research Service has called for lawmakers to examine user protection, market fairness, corporate governance, investment incentives, and interaction with existing laws when setting any final ownership restrictions. The research body did not recommend canceling or blocking the Naver-Dunamu transaction.