Naver-Dunamu Merger Clears One Hurdle, Faces Antitrust Scrutiny in South Korea

The planned merger between Naver Financial and Dunamu has cleared one regulatory hurdle in South Korea. The Regulatory Reform Committee's recommendation has eased rules on major shareholder eligibility under the Special Financial Transactions Act, making it easier for Naver to qualify as a major shareholder due to its ongoing trial over alleged Fair Trade Act violations.

However, this development is separate from the antitrust review by the Fair Trade Commission. The agency will closely examine whether the combination of Naver's payment infrastructure, data, and user base with Dunamu's crypto trading service could lead to market dominance or restrict competition.

The Fair Trade Commission is concerned that the tie-up between Naver, South Korea's largest search and platform company, and Dunamu, operator of the country's biggest virtual-asset exchange, could limit consumer choice and exclude competitors.