South Korea’s antitrust regulator, the Korea Fair Trade Commission (KFTC), is moving toward a year-end decision on Naver Financial’s proposed acquisition of cryptocurrency exchange operator Dunamu, as concerns over market concentration complicate one of the country’s most significant digital finance transactions.

    The KFTC has begun formal deliberations on the proposed takeover after identifying potential threats to competition across several financial and technology markets, according to a Nov. 10 report by The Korea Times. The regulator is considering whether safeguards proposed by the companies are sufficient to address those concerns.

    The transaction would place Dunamu, operator of South Korea’s leading cryptocurrency exchange Upbit, under the control of Naver Financial, expanding the financial services business associated with internet giant Naver.

    Under the proposed share exchange, Dunamu investors would receive approximately 2.54 Naver Financial shares for each share they currently hold. The arrangement would make Dunamu a wholly owned subsidiary of Naver Financial, according to The Korea Times.

    The acquisition would strengthen Naver Financial’s presence in digital assets while potentially allowing the combined business to connect cryptocurrency trading with established online payment services.

    That prospect has drawn scrutiny from the KFTC, which is assessing whether the integration could give the companies an unfair advantage over rivals.

    Stablecoin Ambitions Add Regulatory Complexity

    One of the more unusual aspects of the KFTC investigation involves South Korea’s prospective market for stablecoins denominated in the Korean won.

    Although a formal market for such products has yet to emerge, the KFTC is examining how the proposed acquisition might affect competition if legislation governing won-backed digital currencies advances.

    According to The Korea Times, KFTC official Jun Sung-bok told reporters that the regulator’s decision to examine a market that does not yet exist represents an uncommon approach to merger oversight.

    Jun, director general of the KFTC’s business trade and mergers and acquisitions bureau, explained that proposed stablecoin legislation and the companies’ stated commercial ambitions warranted an assessment of potential competition risks.

    The scrutiny highlights the regulatory challenges facing established technology companies seeking to expand into digital assets as South Korea develops its legal framework for cryptocurrency-related financial services.

    Related: South Korea Weighs Antitrust Curbs as Naver-Dunamu Deal Stalls

    A combination of Naver Financial’s payment infrastructure and Dunamu’s cryptocurrency trading operations could create opportunities for new financial products. The KFTC, however, is weighing whether such integration might disadvantage competing platforms.

    Proposed Safeguards Could Clear Path to Approval

    Despite the competition concerns, the acquisition has not been rejected.

    The Korea Times reported that the companies submitted proposals intended to address the KFTC’s objections, including measures designed to ensure fair treatment of competitors and restrictions on certain commercial practices.

    The KFTC’s case examiner has determined that the proposed remedies could adequately address the identified risks, according to Jun, as cited by the newspaper.

    That assessment does not constitute final approval.

    The ultimate decision rests with the KFTC’s independent commissioners, who are expected to consider the companies’ arguments and the proposed conditions during a forthcoming plenary hearing.

    The KFTC could authorize the acquisition, require additional safeguards or prohibit the transaction.

    The regulator began examining the deal after receiving its formal notification on Nov. 28, 2025. It subsequently sought information from the companies and consulted other government bodies, including the Financial Services Commission, during October, according to The Korea Times.

    The KFTC also disputed reports suggesting that financial regulators had been excluded from the review process.

    KFTC Decision Expected Before End of 2026

    The KFTC intends to complete its assessment by the end of December, consistent with a timetable previously outlined by KFTC Chairman Ju Biung-ghi in September, The Korea Times reported.

    Naver and Naver Financial have indicated that they will continue cooperating with regulators and participate in the KFTC’s upcoming hearing.

    The companies said they had provided requested documents and explanations throughout the review and would support efforts to complete the remaining procedures within the expected timetable, according to the newspaper.

    For Naver Financial, the decision will help determine whether its planned expansion into cryptocurrency infrastructure can proceed under the proposed ownership structure.

    For South Korean regulators, the case presents a broader question: how to preserve competition as major technology platforms increasingly seek to combine conventional financial services with digital asset businesses.

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