Dunamu Sets Up US Investment Unit, Distances Move From Nasdaq Listing Speculation

Dunamu, the operator of South Korea’s Upbit exchange, has established a US unit to pursue new business and investment opportunities in the American market. While some have linked the move to a potential US stock listing, the company said it is part of a broader business diversification strategy.

Yonhap Infomax reported on October 20 that Dunamu recently set up Dunamu USA, Inc. The entity will oversee equity investments in US companies and the management of held assets. It will operate as a subsidiary of Dunamu Central, a newly created unit established for domestic and overseas investment and management purposes.

Dunamu USA will be led by Baek Dong-ho, Dunamu’s head of finance. Baek also serves as chief executive of Dunamu Central and was appointed on an interim basis to build the initial operating structure of both entities, the report said. Dunamu Central was established with paid-in capital of 500 million won, or about $360,000.

The new entity appears to be part of a strategy to expand Dunamu’s investment activities separately from its existing overseas business. The company has invested in startups through Dunamu & Partners and pursued overseas operations through Dunamu Global. But because Dunamu Global has been focused on business related to Levels, its joint venture with HYBE, Dunamu set up a separate organization to identify and manage new investment opportunities.

The move also reflects an effort to diversify a revenue structure centered on exchange fees. Dunamu posted first-half revenue of 408.1 billion won and operating profit of 111.5 billion won, down 49% and 80%, respectively, from a year earlier. With earnings highly sensitive to conditions in the digital-asset market, securing mid- to long-term growth drivers has become increasingly important.

Some observers have linked the launch of Dunamu USA to the possibility of a future Nasdaq listing. As Dunamu pushes ahead with a comprehensive share swap with Naver Financial, the establishment of a US unit has fueled speculation that the company may be laying the groundwork for an overseas initial public offering. One structure being discussed would have existing shareholders contribute their stakes in kind to the US entity before listing that company.

Dunamu, however, said the creation of the US unit is unrelated to a Nasdaq listing. Its current listing plan is centered on Naver Financial. The stock-swap agreement between the two companies includes a provision to set up an IPO committee within one year after the transaction closes and to work toward listing Naver Financial within five years.