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South Korea’s antitrust regulator has begun formal deliberations on a proposed acquisition that would bring the country’s largest cryptocurrency exchange operator under the ownership of one of its leading digital payment companies, raising concerns about competition across the financial technology sector.
The Korea Fair Trade Commission (KFTC) said Nov. 10 that its review staff had submitted an examination report on Naver Financial’s proposed combination with Dunamu, the operator of Upbit, South Korea’s largest cryptocurrency exchange. The filing marks the start of the commission’s formal review, approximately one year after the companies submitted their merger notification on Nov. 28, 2025.
A share exchange would bring Upbit under Naver Financial
The proposed transaction involves a comprehensive share exchange. Naver Financial would acquire 100% of Dunamu, with existing Dunamu shareholders receiving approximately 2.54 shares of Naver Financial for each Dunamu share they own. Upon completion, Dunamu would become a wholly owned subsidiary of Naver Financial.
The two companies hold leading positions in different parts of South Korea’s digital economy. Dunamu operates Upbit, which commands a significant share of the domestic cryptocurrency exchange market. Naver Financial is the country's leading online payment provider, while its parent company, Naver, has a broad user base across search, online shopping and digital payments.
Regulator identifies risks across multiple markets
KFTC review staff examined 10 markets and 12 types of business combinations, including online payments, digital asset exchanges, search portals, online advertising, e-commerce, financial data services, private and publicly listed stock trading platforms, and online secondhand marketplaces.
The review classified the combinations into two horizontal mergers, two vertical mergers and eight conglomerate mergers. Two horizontal combinations involving publicly listed stock investment platforms and online secondhand marketplaces were considered unlikely to restrict competition and fell within regulatory safe-harbor categories.
However, the agency identified potential competition concerns in major markets, particularly online payments and cryptocurrency exchanges. Regulators warned that combining leading companies could concentrate users and data within a single platform, making it harder for rivals to attract customers or enter the market.
Jeon Seong-bok, head of the KFTC's corporate merger review bureau, said at a government briefing in Sejong that the agency had identified concerns that competitors could be excluded as leading businesses across multiple markets combine.
Unformed Korean won stablecoin market also under scrutiny
In an unusual aspect of the review, the KFTC also examined the potential competitive effects of the Korean won-denominated stablecoin issuance market, which has not yet been established under a formal regulatory framework in South Korea.
Won stablecoins are digital assets designed to maintain a value linked to the South Korean currency. They could eventually be used for payments and transfers if the necessary regulatory framework is introduced.
The regulator assessed the possibility that Naver Financial and Dunamu could enter the market in the future and integrate their own stablecoin with their payment services and cryptocurrency exchange. Such arrangements could give their affiliated platforms preferential trading conditions or make it more difficult for competing exchanges and digital asset businesses to gain access to customers.
For example, preferential benefits for users spending a company-issued stablecoin on an affiliated exchange could disadvantage rival exchanges and cryptocurrency issuers. The KFTC said this was the first time it had examined potential competition restrictions in a market that has not yet formed.
Companies revise proposed safeguards as final decision approaches
After receiving preliminary review findings, the companies submitted an initial set of proposed corrective measures. The KFTC requested revisions, saying the original proposal did not adequately address its concerns. The companies subsequently submitted a revised final proposal incorporating expert opinions and changes requested by the review staff.
Although the examiners concluded that the transaction raised concerns under South Korea’s competition law, they recommended conditional approval, finding that the revised safeguards could address the identified risks.
The specific measures have not been disclosed. The KFTC described their general direction as requiring equal treatment of competing businesses and potentially restricting certain business practices.
The commission's full committee will make the final decision on whether to approve the transaction and what conditions to impose. The KFTC said it aims to hold the hearing before the end of the year, with a meeting reportedly expected on Nov. 18. A decision could follow within one to two weeks of deliberations, potentially allowing the outcome to be announced before the end of November.
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