Dunamu-NAVER Share Swap Deal May Face Shareholding Regulatory Conflict

According to data disclosed by the Legislative Research Service of the National Assembly of South Korea, the share swap transaction between Dunamu, the parent company of Upbit, and a subsidiary of NAVER may simultaneously face the minimum subsidiary shareholding ratio requirements stipulated by the Fair Trade Act, as well as the shareholding cap for major shareholders of virtual asset trading platforms.

If NAVER Pay is converted into a holding company in the future and includes the trading platform as a subsidiary, it may need to adjust its governance structure. South Korea's Fair Trade Act stipulates that a holding company's shareholding ratio in a listed subsidiary shall not be less than 30%, and not less than 50% for an unlisted subsidiary; the shareholding ratio for a venture capital holding company shall not be less than 20%.