Is a financial giant in Asia about to be born? Naver plans to merge with the leader CEX parent company Dunamu, and experts predict annual profits will exceed 2.1 billion dollars!

Experts predict that the proposed merger between South Korean internet giant Naver and its subsidiary Naver Financial with local mainstream CEX operator Dunamu will create a “super company” with an annual profit of up to 2.1 billion dollars (approximately 3 trillion Korean won), potentially becoming the largest fintech company in Asia. Jang Ho-yoon, a researcher at Korea Investment & Securities, believes that this acquisition will allow Naver to fully enter the encryption industry, particularly through stablecoin, GIWA protocol, and generate significant synergies with Naver's existing advertising, commerce, and fintech businesses. Although legal obstacles remain, the merger will provide Naver with a new growth engine and strengthen its competitive advantage in the encryption and payment sectors.

Strong Alliance: The Birth Potential of Super Financial Technology Giants

Naver plans to create a new entity that can dominate the Asian fintech and encryption market by merging its financial subsidiary with Dunamu.

· Consolidated profit forecast

According to South Korean media Newsis and Wow TV, the Naver-Dunamu merger “is expected to generate a combined operating profit of 30 trillion won” (approximately 2.1 billion dollars).

· Naver's strategic expansion

Naver Financial, a subsidiary of South Korea's largest internet company Naver, has operated multiple banking and electronic payment platforms. Researcher Jang Ho-yoon explained that Naver can fully enter the encryption industry through the acquisition of Dunamu, addressing its valuation decline caused by a “lack of new growth engines.”

· Core synergy effect: stablecoin ecosystem

Jang Ho-yoon believes that this merger will create significant synergies:

The industry expects the new company to create a stablecoin ecosystem around Dunamu's exchange business and its GIWA protocol (the Layer-2 Ethereum chain of the local CEX).

Combining this with Naver's existing services will give it a competitive advantage in the encryption and general payment field.

Macroeconomic Support: Interest Rate Cut Cycle and Trading Volume Forecast

Researcher Jang Ho-yoon predicts that as the United States enters a rate-cutting cycle, cryptocurrency trading activities will thrive, creating vast business opportunities for the newly merged company.

· The US interest rate cut cycle is beneficial for encryption trading.

Jang Ho-yoon predicts that as the United States enters a “rate cut cycle,” cryptocurrency trading volume may rise.

· Business opportunities in blockchain are emerging

He pointed out that as “advanced blockchain-driven businesses such as stablecoins and tokenized securities become popular in South Korea”, it will open up diverse business opportunities for Naver.

· Naver's valuation reshaping

Researchers believe that this merger will “open up various possibilities for Naver” and make it “the most noteworthy internet large-cap stock next year.”

Regulatory Outlook: Legal Barriers and Positive “Atmosphere”

Despite ongoing concerns in the market regarding regulatory uncertainty, experts are relatively optimistic about the overall prospects of the merger.

· Major legal obstacles

Although experts claim that there is still “regulatory uncertainty” at present, some have mentioned five major legal obstacles hindering corporate mergers this month, but Jang Ho-yoon expressed relative optimism about this.

· Avoid traditional financial regulations

Currently, South Korean regulations still prohibit banks from engaging in encryption-related businesses, but some believe that these rules do not apply to electronic payment providers like Naver.

Researchers pointed out that there is uncertainty about whether financial technology companies such as Naver Financial should be regarded as traditional financial companies. However, he concluded: “The level of uncertainty surrounding mergers is not high.”

· Speculations on the subsequent public offering

It is estimated that the CEX holds over 70% market share in the Korean market. The merger talks have also sparked speculation that Naver Financial-Dunamu may seek to list on NASDAQ.

Conclusion

The merger between Naver and Dunamu is undoubtedly a milestone event in the Asian financial technology sector. It is expected to create a giant with annual profits exceeding 2.1 billion dollars, and more importantly, it will deeply integrate traditional internet, financial technology, and encryption exchange businesses, especially with a strategic ambition to build an ecosystem around stablecoin. Although regulatory approval remains the key to final implementation, the approaching macro interest rate cuts and experts' optimistic attitude toward trading indicate that once this super company is successfully formed, it will occupy a significant competitive advantage in the global encryption and payment markets.

This article is news information and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions cautiously.