According to informed sources, Korean internet giant Naver is set to enter the digital finance sector by acquiring Dunamu, the operator of Korea's largest cryptocurrency exchange Upbit, making it a wholly-owned subsidiary of Naver.

Sources revealed that Naver plans to conduct a comprehensive stock swap through its fintech subsidiary Naver Financial to make Dunamu its wholly-owned subsidiary.

One informed source stated, "Both companies are expected to convene their respective board meetings soon to approve the comprehensive stock swap plan."

Based on the integration, both companies are expected to launch a Korean won-backed stablecoin project along with other digital finance initiatives, a move that could reshape Korea's digital finance landscape.

Upbit, operated by Dunamu, is Korea's largest cryptocurrency exchange by trading volume and ranks fourth globally.

However, Naver cautioned in regulatory filings that no final decision has been made yet.

The company stated: "Naver Financial is in negotiations with Dunamu regarding various forms of cooperation, including stock swaps, stablecoin projects, and unlisted stock trading. But no decisions have been made at this time."