Naver CEO warns neither company can survive global tech competition alone, urges expansion through AI blockchain integration
South Korea’s largest internet platform Naver and cryptocurrency heavyweight Dunamu have pledged to invest a total of 10 trillion won ($6.8 billion) over the next five years, laying out expansion plans and global ambitions ahead of their planned merger.
The announcement came at a joint press conference on Thursday, one day after the boards of Naver Financial and Dunamu approved a stock swap deal that will put the cryptocurrency operator under full ownership of Naver Financial.
The event, held at Naver’s Pangyo headquarters, featured a rare group of top executives, including Naver founder Lee Hae-jin, Dunamu Chairman Song Chi-hyung, Naver CEO Choi Soo-yeon, Dunamu CEO Oh Kyung-seok, and Naver Financial CEO Park Sang-jin.
“We are at an inflection point where mass adoption of blockchain technology and rapid advances in generative AI are unfolding at the same time,” Choi said. “Our goal is to integrate artificial intelligence and blockchain technology to create new types of financial transactions and build an independent global network based on blockchain technology.”
The digital asset market is undergoing “rapid structural change,” making cooperation essential for global expansion, Oh said.
“With the advancement of global stablecoins, artificial intelligence and blockchain, the lines that once separated digital assets, payment instruments and traditional financial services are collapsing, leading to widespread convergence and a clear shift in the market paradigm,” he said. “This is a pivotal moment for global fintech companies, and we must move quickly and strategically to seize it.”
With the deal bringing together leading players in blockchain, internet services and digital finance, the merger is expected to reshape the digital finance landscape in Korea.
“We believe that the current capabilities of Naver and Dunamu alone are not sufficient for long-term survival in the global technology competition,” Choi said. “That’s why we aim to build a bigger ecosystem together. Over the next five years, we will invest more than 10 trillion won to cultivate talent in AI, blockchain and labs, build a more secure and resilient infrastructure and support promising startups.”
Choi added that early investments will focus on enhancing Korea’s AI and blockchain infrastructure, including GPUs, as well as securing and nurturing talent.
With Dunamu operating Upbit, the world’s fourth-largest cryptocurrency exchange and Korea’s largest cryptocurrency exchange, and Naver and Naver Financial managing the country’s largest gateway and payments platform used by 34 million people with more than 80 trillion won in annual transactions, the combined group is expected to gain a significant advantage over its fintech and banking rivals in the technology-based finance space.
Partnerships between financial companies have accelerated this year, as companies integrate blockchain technology and generative artificial intelligence into services and seek opportunities in new areas, such as stablecoins pegged to the won. Dunamu and Naver Financial also started a stablecoin partnership, which eventually evolved into a full acquisition.
The companies said that any change in management has not yet been decided.
Lee also dismissed talk that Song, founder of Donamo, could take over the leadership of the combined entity. “Song is an amazing talent who can make a significant contribution to Naver and the industry… but we are not about to discuss any leadership transition.”
The stock swap ratio was set at 1 to 2.54, meaning one Dunamu share would turn into 2.54 Naver Financial shares, filings on Wednesday showed. With Naver Financial valued at about 5 trillion won and Dunamu at about 15 trillion won, the merger will create a fintech platform valued at 20 trillion won. Song will become the largest shareholder in the combined Naver Financial with a 19.5% stake, while Naver’s stake will decrease to 17%.
A series of stringent regulatory approvals are still ahead, with financial regulators and the Fair Trading Commission set to review changes in major shareholders, a securities registration filing, a merger review and a business change report for virtual asset service providers.
Choi said listing plans have not yet been decided. With Donamo long rumored to be considering a market debut, possibly on the Nasdaq in the US, the possibility of Naver Financial listing post-merger has raised concerns about dual listings and the erosion of shareholder value.
“This deal is not about Naver Financial going public. It’s about partnering with a company with greater enterprise value to drive global expansion and improve access to capital markets,” she said.
