Naver Corp., South Korea’s internet powerhouse, is gearing up to cancel around 1 trillion won, or $745 million, worth of its treasury stock. This repurchase is more than double the company’s 2024 buyback, highlighting how the leadership currently values its shares.
The move goes beyond ordinary equity management. Naver is executing a bold shift toward fintech, firmly rooted in the crypto sector, as it advances the merger between its subsidiary Naver Financial and Dunamu, the parent company of Upbit, the nation’s leading crypto exchange.
Buybacks and the Dunamu Merger
This significant buyback isn’t the first for Naver. In 2024, it canceled shares worth 400 billion won ($306 million), following a 2023 buyback valued at about 305 billion won. CEO Lee Hae-jin has personally bought 700 million won in company stock, a move that typically signals confidence to investors.
The merger with Dunamu, valued at roughly 15.1 trillion won ($10 billion) in an all-stock deal, is central to Naver’s fintech ambitions. The arrangement uses a stock swap ratio near 1:2.54 and had targeted completion by 2025. However, regulatory hurdles have delayed this to the end of 2026, reflecting South Korea’s cautious approach to crypto consolidation.
These regulatory delays matter because they demonstrate how authorities scrutinize significant mergers involving crypto platforms amidst tightening rules. The stakes are high as Naver aims to integrate one of the country’s largest digital finance players into its ecosystem.
Alongside the merger, Naver Financial is ramping up efforts in stablecoin development and exploring the intersection of AI with Web3 technologies. Teaming up with Dunamu, it is positioning itself at the forefront of digital finance innovation.
