"Naver-Dunamu big deal" report sends Naver stock 'fire pillar'

Naver shares surge on report of Dunamu affiliate inclusion

Shares of domestic portal giant Naver were sharply higher on the 25th. The news that it is pursuing a comprehensive stock swap with Dunamu, operator of the virtual asset exchange Upbit, spread through the market.

As of 11:24 a.m. that day, Naver's share price was trading at 243,000 won, up 15,000 won (6.58%) from the previous day. The share price at one point during the session soared to 252,500 won.

Some media reported that Naver Financial (Naver Pay), where Naver is the largest shareholder, and Dunamu are pursuing a comprehensive stock swap. The comprehensive stock swap transaction is known to be carried out by exchanging newly issued shares issued by Naver Financial for stakes held by existing Dunamu shareholders. Accordingly, Dunamu shareholders would be converted into Naver Financial shareholders. If completed, Dunamu would become a 100% subsidiary of Naver Financial and be incorporated into the Naver Group. With Dunamu in its fold, Naver and Naver Pay are expected to become a super app encompassing everything from shopping to finance and virtual asset trading.

Dunamu is said to send a letter containing this information to major shareholders in the near future. Also, Naver Financial and Dunamu are reportedly each operating task force (TF) teams to pursue the comprehensive stock swap. They are said to have entered the final preparations, such as calculating the stock (unlisted) exchange ratio.

In response to the report, a Naver official replied, "(We are) in the process of confirming (the facts)."

Min-gyeong Shin, Hankyung.com reporter radio@hankyung.com