South Korea’s Fair Trade Commission has moved the proposed merger between Naver Financial and Dunamu into a formal review stage, opening a deeper examination of whether the transaction could lead to excessive market power.
The regulator has already examined remedies offered by the two companies and sent an examiner’s report to the full commission for a plenary decision. A final conclusion is targeted by the end of the year.
Deal structure under review
If the transaction goes through, Naver Financial would acquire 100% of Dunamu. Under the proposed terms, existing Dunamu shareholders would receive about 2.54 shares of Naver Financial for each Dunamu share they hold.
The FTC’s review is focused on whether combining the two businesses would harm competition, rather than treating the merger as a routine filing. The case has now advanced to the full commission, which will decide whether the companies’ proposed remedies are sufficient.
Ten markets included in the analysis
The commission said its assessment spans 10 markets. Those include online payments, cryptocurrency exchanges, search, advertising, shopping, and MyData services.
The review also extends beyond current business lines to a possible Korean won-denominated stablecoin market. That means the regulator is not only weighing the companies’ existing positions, but also how the combined group could influence a future market if that sector develops.
Where antitrust concerns are centered
According to the examiner’s findings, competition issues were identified in six conglomerate combinations that link cryptocurrency exchange services with Naver’s broader platform businesses.
Examiners also pointed to four additional combinations tied to a potential stablecoin business, particularly where payment functions and exchange services could be connected. The concerns center on whether those overlaps and linkages could strengthen the merged company’s position across adjacent services.
What the FTC can do next
The FTC will now judge whether the corrective measures submitted by Naver Financial and Dunamu adequately address those risks. If the commission decides the remedies are not enough, it can require changes to the deal structure or block the transaction.
For now, the next confirmed milestone is the plenary decision by the full commission. The regulator’s stated goal is to finish the review by year-end, with the outcome depending on whether competition can be protected across both existing markets and the possible future stablecoin segment.
Source: en.bloomingbit.io