FSS Flags Disclosure Issues in Upbit-Naver $93M Deal

- Regulators demand corrections in Dunamu's Naver merger filing. - Coinone may sell up to 20% of shares to rival buyers. On April 3, 2026, South Korea’s Financial Supervisory Service (FSS) ordered Dunamu, the operator of cryptocurrency exchange Upbit, to revise its disclosure for a planned merger with Naver Financial after flagging “important omissions or false statements” in the filing submitted on March 30. The FSS specifically identified deficiencies related to “plans for future company restructuring” and “important matters related to other investment judgments.” Dunamu’s initial filing stated it had made no definitive decisions about post-merger restructuring. However, the FSS found inaccuracies in these claims and demanded corrections. The proposed $93 million merger involves Dunamu exchanging stocks with Naver Financial. The deal faces heightened uncertainty, however, as it awaits regulatory approvals. The company must secure clearance from the Fair Trade Commission and also needs approvals under both the Credit Information Act and the Specific Financial Information Act for changes in major shareholders. Additionally, ongoing legislative developments with South Korea’s Digital Asset Framework Act could further influence the transaction. Reports suggest these challenges may significantly delay or even cancel the merger. In a parallel development, Korea Investment & Securities is reportedly exploring an acquisition of a stake in Coinone, South Korea’s third-largest cryptocurrency exchange. According to a Cryptonews.net report on April 3, the company is holding preliminary discussions with regulators and lawmakers about purchasing up to 20% of Coinone’s shares. Coinone faces financial struggles, having reported deficits over the past three years. Consequently, increasing regulatory pressures will likely force the company to adjust its ownership structure, as current regulations seek to limit the stake that major shareholders can hold in cryptocurrency exchanges. This rule may compel Coinone’s CEO, Cha Myung-hoon, to divest part of his 53.44% stake. While Coinone has acknowledged interest from several domestic companies, it stated that it has finalized no concrete plans. As South Korea's cryptocurrency market consolidates, analysts view Korea Investment & Securities’ interest in Coinone as a strategic response to Mirae Asset Group’s recent acquisition of Korbit, another major exchange. However, market analysts note that discrepancies in price expectations have hindered the finalization of firm deals.