South Korean financial regulators are considering new measures to limit market concentration in the cryptocurrency industry as a proposed merger between Naver Financial and digital asset exchange operator Dunamu remains stalled amid competition concerns and legislative uncertainty.
The Financial Services Commission (FSC) said authorities are examining safeguards intended to prevent major corporate shareholders from exerting excessive control over cryptocurrency exchanges, according to a report published Thursday by The Korea Times.
The proposed transaction, announced in November 2025, would make Dunamu a wholly owned subsidiary of Naver Financial through a comprehensive share exchange. The deal would bring together Naver’s financial technology operations and Dunamu’s cryptocurrency trading business, creating a potentially powerful competitor in South Korea’s expanding digital finance market.
Regulators have yet to clear the combination, with the country’s Fair Trade Commission (FTC) assessing whether the merger could undermine competition.
In a written response to Democratic Party lawmaker Lee Kang-ill, the FSC confirmed that competition authorities were conducting a detailed examination of the transaction, The Korea Times reported.
The commission also indicated that provisions being considered under the proposed Digital Asset Basic Act could establish protections against undue corporate influence over cryptocurrency exchanges.
The measures would seek to preserve the independence of trading platforms, which regulators regard as important components of the country’s financial market infrastructure.
Competition Concerns Complicate Expansion Plans
The proposed merger reflects Naver Financial’s ambition to expand its presence in digital assets while giving Dunamu access to a broader range of financial technology services.
Naver Financial, part of South Korea’s Naver technology group, sees the cryptocurrency industry as an opportunity to develop new sources of growth. Dunamu, meanwhile, could use the partnership to extend its operations beyond digital asset trading and strengthen its connections with Naver’s existing financial and technology platforms.
However, the companies’ established positions in their respective markets have attracted regulatory attention.
According to The Korea Times, competition officials are examining whether combining the businesses could give the merged company an advantage that restricts competition or creates barriers for other market participants.
The regulatory review has become a significant obstacle to completing the transaction, with authorities yet to announce a final determination.
Legislative Uncertainty Adds to Delays
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Beyond antitrust approval, the merger faces uncertainty surrounding South Korea’s proposed Digital Asset Basic Act, which is expected to shape the regulatory framework governing cryptocurrency businesses.
Discussions over the legislation have progressed more slowly than anticipated, complicating the outlook for the proposed combination, The Korea Times reported.
The FSC’s consideration of additional protections suggests that policymakers are seeking to balance the development of digital finance with safeguards against excessive concentration of market power.
Any new restrictions on shareholder influence could affect how cryptocurrency exchanges operate within larger corporate groups, although the precise requirements have not been finalized.
The companies must also obtain several separate regulatory approvals before proceeding. These include FTC clearance, authorization for a change in Naver Financial’s controlling shareholder and regulatory acceptance of a filing related to a change in Dunamu’s controlling shareholder.
Transaction Deadline Pushed Into 2027
The prolonged approval process has forced Naver Financial and Dunamu to repeatedly revise their transaction timetable.
The original June 30, 2026, deadline was first extended to Sept. 30 and subsequently to Dec. 31. The companies have since postponed completion until March 31, 2027, marking the third delay, according to The Korea Times.
The revised schedule underscores the uncertainty surrounding one of South Korea’s prominent proposed financial technology combinations.
For Naver Financial, the delays postpone its planned expansion into the digital asset sector. For Dunamu, they prolong the wait for closer integration with Naver’s broader technology and financial services ecosystem.
Source: The Korea Times
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