Naver Plans IPO for Fintech Arm After 10.3B Dunamu Deal

South Korean technology giant Naver announced plans on Wednesday to pursue an initial public offering for its fintech subsidiary, Naver Financial, following the completion of a share swap deal with Dunamu, the operator of the country's largest cryptocurrency exchange, Upbit. The transaction, valued at approximately 10.3 billion dollars, aims to integrate Dunamu fully under Naver Financial, with the IPO targeted within five years of the deal's closure, potentially extending to seven years based on market and regulatory conditions.

The share swap agreement, first disclosed in a November regulatory filing, will result in Naver Financial acquiring a 100 percent stake in Dunamu. As part of the investor agreement, the companies committed to forming an IPO committee within one year after the transaction closes to oversee preparations, including organizational restructuring. Naver emphasized that it will secure voting rights through shareholder pacts to maintain control over Naver Financial, ensuring the unit remains a consolidated subsidiary even after a potential listing. This structure favors a parent-level public offering rather than a standalone debut for Dunamu, positioning the...