Naver Financial, the fintech subsidiary of South Korea's largest portal operator Naver, announced on Wednesday its plan to acquire Dunamu Inc., the operator of the country's biggest cryptocurrency exchange Upbit, making it a wholly-owned subsidiary.

In a regulatory filing, Naver Financial stated that its board approved the share-swap acquisition deal, offering 2.54 Naver Financial shares for each Dunamu share.

Upon completion, Dunamu will become part of Naver Financial, enabling Naver to expand its portfolio into digital finance and strengthen its position in the rapidly growing blockchain services sector.

The companies are expected to seek shareholder approval before formally commencing integration procedures.