- Dunamu received significant investment from Hana Financial following Upbit’s growth in crypto trading
- The banking regulators of South Korea were looking into digital asset regulations as activity in the crypto market increased.
- Dunamu was renegotiating its operations and was running the Upbit platform.
To further enhance its digital asset business, Hana Financial signed a deal to acquire a majority stake in the crypto exchange Upbit, which is operated by Dunamu.
The deal, disclosed in a regulatory filing on Friday, involves Hana Bank purchasing 2.28 million shares in Dunamu from Kakao Investments for approximately 1.003 trillion Korean won.
Hana Financial Expands Presence Through Dunamu Investment
The acquisition gives Hana Financial Group a 6.55% stake in Dunamu, making it the company’s fourth-largest shareholder, as traditional financial institutions continue expanding their involvement in South Korea’s digital asset market.
Source: Dart
The transaction arrives while South Korean regulators and lawmakers continue developing new digital asset rules under the proposed Digital Asset Basic Act. At the same time, several domestic financial firms have increased exposure to crypto-related businesses through investments, partnerships, and infrastructure initiatives tied to stablecoins, blockchain settlements, and exchange operations.
According to the regulatory filing, Hana Bank is funding the acquisition entirely in cash and will use approximately 2.78% of its own equity for the purchase. Hana Financial stated that the investment is intended to strengthen its competitiveness within the evolving financial sector through strategic equity participation.
The transaction reduces Kakao Investments’ position in Dunamu while allowing the company to retain 1.4 million shares. Kakao said the partial sale was intended to secure funding for future investment activity.
The Dunamu ownership structure remains concentrated among several major shareholders. South Korean media outlet The Chosun Daily previously reported that Dunamu Chairman Song Chi-hyung holds approximately 25.5% of the company, while Vice Chairman Kim Hyoung-nyon owns 13.1%.
Kakao previously held 10.6%, and Woori Technology Investment controlled 7.2% before the latest transaction involving Hana Financial. The investment places Hana Financial among the largest institutional stakeholders connected to Upbit, which remains South Korea’s largest cryptocurrency exchange by trading activity.
Upbit frequently accounts for more than 80% of domestic market share in trading volume, according to the information provided in the filing-related reports. The exchange is also ranked among the world’s largest crypto spot trading platforms by daily volume.
Upbit Operator Continues Corporate Restructuring Discussions
The Dunamu transaction also comes as the company reportedly continues merger and acquisition discussions involving Naver Financial, the financial services division of Naver Group. Reports cited in the provided information stated that the proposed arrangement is expected to further consolidate Upbit’s corporate structure within one of South Korea’s largest technology groups if finalized.
The developments surrounding Dunamu reflect broader changes taking place across South Korea’s digital asset industry, where established financial and technology firms have increasingly moved into crypto-related infrastructure.
The country’s banking sector has gradually expanded its blockchain and stablecoin activity after years of limited direct involvement in cryptocurrency businesses.
Hana Financial Strengthens Digital Asset Partnerships
Hana Financial has expanded several digital asset initiatives over the past year through partnerships with both domestic and international companies. In March, Hana’s credit card subsidiary entered into a marketing agreement for USDC stablecoin services alongside Circle and Crypto.com.
The arrangement focused on stablecoin-based payment initiatives for foreign visitors in South Korea. The financial group also partnered with Standard Chartered Group to cooperate on digital asset and global financial market initiatives.
Separately, Hana Financial signed a trilateral memorandum of understanding with POSCO International and Dunamu in April to develop a blockchain-based remittance system. The agreement marked another direct collaboration between Hana Financial and the Upbit operator before the latest equity acquisition was announced.
Hana Financial Group reported annual net profit of approximately 4 trillion Korean won, or about $2.67 billion, last year while continuing to increase its activity across digital finance and blockchain-related projects.
South Korean Financial Firms Increase Crypto Exposure
The Hana Financial investment reflects broader movement among South Korean financial institutions toward cryptocurrency-related businesses. Local lawmakers and regulators are currently working on a broader digital asset regulatory framework under the proposed Digital Asset Basic Act, which includes rules governing stablecoin operations in South Korea.
Other financial firms have also expanded their investments in local crypto exchanges over the past year. Mirae Asset Consulting, an affiliate of Mirae Asset Group, acquired a controlling stake in cryptocurrency exchange Korbit in February.
At the same time, local exchange Coinone disclosed that it was exploring the sale of shares held by its chairman, while reports indicated that both financial institutions and foreign exchanges were evaluating potential involvement in the transaction.
Naver Financial also previously agreed to acquire Dunamu through a share swap arrangement tied to Upbit’s ownership structure.
