Regulators weigh antitrust safeguards as Naver-Dunamu deal stalls

Financial regulators are contemplating measures to tackle potential antitrust issues stemming from the proposed merger between Naver Financial and Dunamu, according to a statement released on Thursday. The Fair Trade Commission (FTC) is currently scrutinizing whether the proposed consolidation of the two entities would stifle competition within the market. The Financial Services Commission confirmed this in a written response to Rep. Lee Kang-ill of the ruling Democratic Party of Korea.

Moreover, the FTC is also examining safeguards to guarantee that cryptocurrency exchanges - which are integral to the financial system - continue to fulfill their public interest and impartial roles, without succumbing to undue influence from any single company or shareholder. This consideration is part of the proposed Digital Asset Basic Act.

In November of the previous year, Naver Financial had unveiled plans to convert Dunamu into a wholly-owned subsidiary through a comprehensive share swap. The merger is expected to provide Naver Financial with fresh avenues for growth in the digital assets sector. Following the merger, Dunamu would be positioned to broaden its operations beyond its present cryptocurrency exchange and integrate more closely with Naver's broader business interests.