Antitrust watchdog’s approval signals a more flexible approach to crypto-finance tie-ups, though Naver-Dunamu merger remains in limbo
Mirae Asset Financial Group’s acquisition of local cryptocurrency exchange Korbit marks the first takeover of a digital asset exchange by a financial group in South Korea.
The move signals regulators’ growing willingness to allow traditional financial groups to expand into digital assets.
Earlier this month, the country’s antitrust watchdog approved Mirae Asset Consulting’s acquisition of a 92.06 percent stake in Korbit. The unit is the de facto holding company of the brokerage-led financial group and oversees its hotel and golf course businesses.
The Fair Trade Commission’s approval comes as Korean authorities reassess strict regulatory barriers that have long separated traditional financial institutions from the digital asset industry, seeking to adapt to the rapidly evolving financial landscape.
“As regulatory frameworks and legislation continue to evolve globally, it is important to comprehensively assess the changing landscape,” Financial Services Commission Chairman Lee Eok-won said at a press briefing in May.
Local brokerages and banks have been moving to secure stakes in crypto exchanges, betting on the sector’s future growth.
Samsung Securities and its affiliates Samsung SDS and Samsung Card jointly acquired a 4 percent stake in Dunamu, the operator of the country’s largest crypto exchange Upbit. Hanwha Investment & Securities also raised its stake in Dunamu from 5.93 percent to 9.84 percent, joining Hana Bank, which owns a 6.55 percent stake in the operator.
The country’s No. 2 crypto exchange, Bithumb, has also attracted interest from securities firms such as Kiwoom Securities. Korea Investment & Securities acquired a 20 percent stake in Coinone, another major crypto exchange here.
While these investments were limited to minority stakes, Mirae Asset’s acquisition of a controlling stake in Korbit represents a far more significant step, opening the door for financial groups to own and operate cryptocurrency exchanges.
“While local financial institutions have been looking for ways to partner with crypto exchanges in response to the evolving investment landscape, the deal opens a new chapter for the industry,” an official at a local crypto exchange said.
Greenlight for Naver-Dunamu?
The approval of Mirae Asset’s acquisition of Korbit has also turned attention to another pending deal: the proposed merger of Dunamu and Naver Financial, which is currently under review by the antitrust watchdog.
The two companies filed for antitrust approval in November last year, but the regulator has yet to reach a decision.
As the review has dragged on, the timeline for their share swap has been postponed twice. Originally scheduled to close by the end of June, the transaction is now expected to be completed by the end of December.
But approval for the Naver-Dunamu merger remains murky due to its different implications for market competition.
Given Korbit’s market share of just 0.5 percent, the FTC approved Mirae Asset’s acquisition on the grounds that “the restructuring of the digital finance market and innovation in financial services to foster greater competition in the market.”
On the other hand, Dunamu and Naver Financial are both dominant players in their respective markets. Upbit is the largest crypto exchange here, with a market share of nearly 70 percent. Naver Financial is the country’s largest digital payments platform.
Furthermore, with Naver Financial’s reach extending well beyond digital payments, the FTC is expected to assess the broader ecosystem that could emerge from the deal. The merger could create an integrated platform that expands beyond payments to connect crypto assets with real-world financial services.
Naver’s recent investment in US stablecoin payments platform Rain has fueled speculation that the company is laying the groundwork for a broader push into e-commerce powered by digital assets.
Through its Silicon Valley-based investment arm Naver Ventures, the company joined Rain’s $250 million Series C funding round. Although the size of its investment was not disclosed, the deal underscores Naver’s ambitions to expand stablecoin-based payment services globally ahead of Naver Financial’s planned merger with Dunamu.
By Im Eun-byel (silverstar@heraldcorp.com)