Dunamu and Naver Financial Delay Merger to December 31 Amid Regulatory Concerns

The long-awaited merger between Dunamu, operator of South Korea's largest crypto exchange Upbit, and Naver Financial has hit another snag. The companies have pushed back their stock-swap deal to December 31, 2026, due to concerns about the Digital Asset Basic Act (DABA), which could impose shareholder stake limits.

The original completion target was June 30, but it's been delayed twice before: once to September 30 and now to December 31. The Korea Fair Trade Commission has been scrutinizing the merger on antitrust grounds, while the Financial Supervisory Service issued a correction order to Dunamu in April over material disclosure issues.

The deal values Dunamu at approximately 15.1 trillion won ($10B), with Naver Financial valued at around 4.9 trillion won. The stock-swap ratio sits at about 1:2.54, meaning Naver Financial shareholders would receive that proportion of Dunamu shares as the latter becomes a wholly owned subsidiary.

The November 19 shareholder meeting will be the next major milestone, where shareholders will vote on the terms. If approved, the final barrier becomes purely regulatory, and the risk is that the deal's structure may look different from what was originally proposed due to DABA's potential impact.