KFTC Initiates Review of Naver and Dunamu Merger Including KRW Stablecoin

The Korea Fair Trade Commission (KFTC) has determined that there are concerns regarding competition in the merger between Naver Financial and Dunamu, and has initiated the review process. The issuance market for KRW stablecoins has also been included in the review. The merger will proceed with Naver Financial acquiring all shares of Dunamu and providing approximately 2.54 shares of Naver Financial stock to Dunamu shareholders. The KFTC has categorized the relevant market into a total of 10 segments and has identified 12 horizontal, vertical, and mixed combinations. In particular, it is expected that there will be two vertical combinations and two mixed combinations related to KRW stablecoins. The KFTC has expressed concerns about the exclusion of competing businesses and has reviewed the submitted draft corrective measures before receiving the final proposal. Legislation for the KRW stablecoin market is underway, and the need for a determination of competitive restrictions has been emphasized. The corrective measures include equal treatment of competing businesses and restrictions on business practices. The KFTC plans to hold a plenary meeting within the year to decide on the final approval of the merger and the content of the corrective measures.

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