CoinDesk reported these plans Monday (Nov. 24), citing multiple media reports.
Upbit did not immediately reply to PYMNTS’ request for comment.
According to the CoinDesk report, the merger of Upbit’s parent company Dunamu and Naver will be completed this week and could form an organization that bridges crypto and traditional finance.
Bloomberg reported in September that Naver’s FinTech arm, Naver Financial and Dunamu were discussing potential collaborations, including a merger.
That report said that the tech and cryptocurrency industries in South Korea are beginning to converge and that the country’s regulators are signaling their openness to innovation.
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The Naver Pay digital wallet is one of the most widely used such products in South Korea, while Upbit’s crypto exchange is the country’s largest, according to the report.
Combining the two could speed up the adoption of digital assets in commerce and finance, the report said.
More than one-third of South Korea’s population, or 18 million people, trade digital assets, per the report.
Naver said Nov. 5 that its quarterly revenue topped 3 trillion South Korea won (about $2.04 billion) for the first in in the third quarter, driven in part by the expanded integration of artificial intelligence into its search platform and commerce businesses.
The company said its FinTech revenue increased 12.5% year over year and 5.2% quarter over quarter to reach 433.1 billion South Korean won (about $294.5 million).
“Naver Pay’s total payment volume in Q3 reached KRW 22.7 trillion (about $15.4 billion), up 21.7% from the same period last year, mainly due to the growth in the Smart Store and the continued expansion of its external ecosystem,” Naver said in a Nov. 5 earnings release.
On Sept. 11, Naver Pay announced that it acquired a 70% stake in an unlisted stock trading platform called Securities Plus Unlimited.
“This acquisition reflects our commitment to expanding our role in creating innovation and user value in line with domestic FinTech growth and policy directions,” Naver Pay said at the time in a press release.
