Naver, 'pillar of fire' amid speculation of incorporating Dunamu as a subsidiary…Dunamu plunges [Comprehensive]

Dunamu plunges in the unlisted stock trading market

Companies holding stakes in Dunamu also weaken

Naver's stock surged after news that it would incorporate Dunamu, the operator of the virtual asset exchange Upbit, into its group. Meanwhile, Dunamu's stock plunged in the unlisted stock trading market. Stocks of companies holding stakes in Dunamu also fell. It is interpreted that the market reflected this as negative for Dunamu and positive for Naver.

According to the Korea Exchange, on the 25th Naver closed at 254,000 won, down 26,000 won (11.4%) from the previous day. The intraday high was 257,000 won.

Earlier, some media reported that Naver would carry out a comprehensive stock swap through its subsidiary Naver Financial to make Dunamu a wholly owned subsidiary. The stock price jumped rapidly immediately after reports that Naver would incorporate Dunamu into its group. As Dunamu possesses one of the country's top blockchain technologies, it is expected to accelerate the won-denominated stablecoin business and pursue various new digital financial businesses in the future.

On the other hand, in the over-the-counter market Dunamu's stock plunged by an amount comparable to Naver's rise. This is interpreted as being because incorporation into Naver's group would effectively derail an overseas listing. According to Securities Plus Unlisted, as of 4 p.m. that day Dunamu was trading at a price down 11.3% from the previous day.

Stocks of companies holding stakes in Dunamu, such as Woori Technology Investment (-7.89%) and Hanwha Investment & Securities (-4.93%), also plunged in regular trading that day.

Naver indicated through a disclosure that the matter is at the discussion stage. In an explanatory filing that day, Naver said, "The subsidiary Naver Financial is discussing various collaborations with Dunamu, including stablecoin, unlisted stock trading, and the stock swap mentioned in the article." However, it added, "No additional cooperation details or methods have been decided."

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