Naver Financial-Dunamu Integration Postponed Again…Will Regulatory Risks Grow Amidst Upbit's Slump?

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The integration work between Dunamu, the operator of Upbit, the largest cryptocurrency exchange in Korea, and Naver Financial has been postponed again. In the industry, along with the view that it is a simple schedule adjustment, concerns are also emerging that regulatory uncertainty might be prolonged in the domestic digital asset market, which has shrunk due to recent declines in trading volume.

Naver announced on the 6th through a public disclosure that the schedule for the comprehensive stock exchange of Dunamu by its subsidiary, Naver Financial, has been changed to December 31st, later than the original plan. Accordingly, the general meeting of shareholders' schedule has also been adjusted to November 19th.

Both companies cited securing time to stably complete the Fair Trade Commission's business combination review and related reporting procedures with financial authorities as the background for this schedule change. This transaction is a procedure for Naver Financial to incorporate Dunamu as a 100% subsidiary, and several licensing procedures remain, including the Fair Trade Commission's approval of the business combination and the financial authorities' approval and reporting of the major shareholder change.

Once the transaction is completed, Naver Financial plans to pursue an initial public offering (IPO) in the future. However, the company explained that the current listing status, timing, and specific implementation plans have not yet been finalized. It also presented a plan to form a committee to promote the IPO within one year after the completion of the stock exchange.

The market evaluates this schedule change as an example showing that regulatory procedures are taking longer than expected, rather than a change in the direction of the business itself. In particular, since both the Fair Trade Commission's review and the financial authorities' approval procedures must be completed, future schedules are likely to be affected by the speed of the regulatory authorities' review.

There is also considerable interest from the cryptocurrency market perspective. Recently, Upbit has been experiencing lower trading volumes than in previous years due to decreased trading value and weakened investor sentiment. In such a situation, if Dunamu's large-scale business combination procedure is prolonged, it could be perceived as a burden on investor sentiment in the short term. However, as this postponement was explained by the company as an adjustment of the schedule to smoothly complete regulatory procedures, it does not currently imply a change in business strategy or a cancellation of the transaction.

Future market attention is expected to focus on when the Fair Trade Commission's business combination review and the financial authorities' approval procedures will be completed. The industry believes that if these procedures are smoothly completed, the construction of Korea's largest digital financial platform, combining Naver's platform competitiveness and Dunamu's digital asset business, will also regain momentum.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*