Naver Financial, the fintech arm of South Korean tech group Naver, has struck an all-stock agreement to buy Dunamu, the owner of Upbit, in a deal valued at $10.27 billion.
Upbit is the country’s largest cryptocurrency exchange and holds a dominant position in a fast-growing market.
Under the terms, Naver Financial will issue 2.54 of its shares for each Dunamu share.
The company said the takeover is designed to build long-term growth around digital assets, an area analysts see as increasingly important for Naver as it looks beyond advertising, e-commerce and content.
Market commentators note that Upbit’s strong profitability and roughly 70% share of South Korea’s crypto trading volumes make it an attractive asset, while Naver’s large user base could help funnel traffic toward the exchange’s products, which are popular with younger customers.
Naver’s chief executive, Choi Soo-yeon, dismissed speculation about a Nasdaq listing, saying the group has no current plans, though any future move would be driven by shareholder value.
Naver shares initially rose more than 7% on the announcement before falling 4.2%, a drop analysts linked to reports of an “abnormal withdrawal” of 54 billion won from Upbit. The exchange apologised and said it would cover the full amount.