Internet company Naver, often called «South Korea‘s Google,» plans to buy the country’s largest cryptocurrency exchange. Upbit.
Naver will conduct a comprehensive stock swap with its payments subsidiary Naver Financial and its parent company. Upbit Dunamu. As a result, Dunamu will become a subsidiary of Naver Financial.
The purpose of a share swap is to combine corporate structures, with one company becoming the parent and the other a wholly owned subsidiary. Unlike a traditional merger, after the transaction, both companies remain legally independent.
South Korean media reports that following the acquisition, Naver Financial’s fintech unit will launch a Korean won-backed stablecoin project and other digital finance initiatives as part of its strategy to aggressively expand into overseas markets.
Chosun, citing an industry source, reported that «the collaboration will be a stepping stone for Naver to become a global fintech company.» Industry experts believe Naver’s stablecoin initiative will benefit significantly from the merger. UpbitMoreover, the cryptocurrency industry in South Korea has begun to develop under more favorable conditions since the election of President Lee Jae-myung in June.
The country’s leader is promoting various laws related to cryptocurrencies, including a bill to legalize stablecoins.