Review of Naver Financial–Dunamu business combination may pick up pace… KFTC requests additional materials

Suehyeon Lee

Summary

The Korea Fair Trade Commission said it has requested additional materials to review the business combination between Naver Financial and Dunamu and is continuing the process.
Taking into account the time needed to correct or supplement submitted materials, the conclusion is expected as early as May, or at the latest within the first half of this year.
The two companies approved a business combination via a comprehensive stock swap in November last year and submitted a filing to the KFTC, and the KFTC said it is reviewing the deal with a focus on its impact on market competition.

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Executives from the three companies are giving presentations at a joint press briefing held on the 27th at Naver 1784 in Seongnam, Gyeonggi Province. From left: Park Sang-jin, CEO of Naver Pay; Choi Soo-yeon, CEO of Naver; Lee Hae-jin, chairman of Naver’s board; Song Chi-hyung, chairman of Dunamu; Oh Kyung-seok, CEO of Dunamu. Photo=Naver

Speculation is growing that the review of the business combination between Naver Financial and Dunamu has entered its final stage.

According to industry sources on the 17th, the Korea Fair Trade Commission (KFTC) has reportedly requested additional materials from the two companies recently and is continuing its review of the business combination. The industry sees the KFTC as accelerating the process by securing supplementary materials needed during the review.

Previously, the KFTC accepted the companies’ merger filing on November 28 last year and began its review. The standard review period for a business combination is 30 days from the date of filing, and it can be extended by up to 90 days if necessary.

The standard review period ended in late December last year, and including an extended review, the statutory review deadline is estimated to be the 28th of this month. However, time spent correcting or supplementing materials submitted by the companies is excluded from the review period. Taking such correction periods into account, the conclusion is expected as early as May, or at the latest within the first half of this year.

The KFTC is said to be conducting its review mainly on the impact of the combination of the two companies on market competition.

Naver Financial and Dunamu each approved a business combination via a comprehensive stock swap in November last year and submitted the relevant filing to the KFTC.