- South Korea’s FTC reviews Naver’s proposed Dunamu acquisition over competition concerns.
- FTC examiners identified competition concerns across 10 markets linked to the proposed deal.
- The FTC also examined the deal’s potential impact on a future won-backed stablecoin market.
South Korea’s Fair Trade Commission (FTC) has opened formal deliberations on Naver Financial’s proposed acquisition of Dunamu, the operator of Upbit, after examiners identified potential competition concerns in payments, digital asset trading and a won-backed stablecoin market that has yet to form.
The FTC has not yet issued a final decision. Its review report, sent to the companies on Nov. 6, sets out examiners’ concerns and proposed measures. The commission will decide on approval and remedies, possibly at a meeting as early as Nov. 18.
FTC Examines Potential Bundling Across Markets
The deal would bring South Korea’s top simple-payment service and virtual asset exchange under one corporate group. Naver Financial plans to acquire all of Dunamu through a full share swap. Following that, Dunamu shareholders would receive approximately 2.54 Naver Financial shares for each Dunamu share, making Dunamu a wholly owned subsidiary upon closing.
The companies said they intend to connect Naver’s artificial intelligence, search, commerce, payment and financial services with Dunamu’s digital asset and blockchain businesses. Examiners assessed effects across 10 South Korean markets, including payments, exchanges, search, advertising, shopping, financial MyData, and stablecoin issuance.
They identified 12 merger relationships across those markets. Only the horizontal combinations involving listed stock investment platforms and online secondhand trading were presumed to fall within the FTC’s safe harbor.
At a briefing, Merger Review Bureau Director-General Jeon Seong-bok said cross-industry deals could restrict competition if bundled sales exclude rivals or impede potential competition. One example is whether Naver Pay benefits tied to Upbit trading could disadvantage other exchanges or payment companies.
Follow us on X for real-time crypto updates.
Future Won Stablecoin Market Included
The FTC also examined the deal’s links to a won-backed stablecoin issuance market, although it is not yet institutionalized. Its analysis covered four relationships among stablecoin issuance, exchanges, simple payments and online shopping.
Jeon said examiners considered proposed stablecoin bills, policy work by relevant agencies and materials submitted by the companies when assessing whether the market would form. Merger Division head Kim Hye-seon said declining to assess an unformed market could affect future competition.
Subscribe to our YouTube channel for the latest crypto news.
Related: South Korea to Propose Stablecoin Consolidation Bill
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
