Upbit-Naver Deal Faces Regulatory Clash Over Ownership Rules

South Korea’s proposed crypto ownership rules have raised a potential governance conflict for Naver Financial’s planned acquisition of Upbit operator Dunamu if the company later qualifies as a holding company. Summary South Korean researchers warn ownership caps could conflict with holding-company minimum shareholding requirements for Upbit. Naver Financial’s Dunamu share swap is scheduled for December 31 after regulators delayed approvals twice. Fair Trade Act requires holding companies to own 50% of shares in unlisted subsidiaries currently. Financial regulators say no major-shareholder cap for cryptocurrency exchanges has yet been finalized in Korea. Naver Financial plans to acquire 100% of Dunamu through a comprehensive share swap pending approvals. Yonhap News Agency reported Sept. 15 that the National Assembly Research Service had examined how a proposed cap on major shareholders of virtual asset exchanges could interact with existing subsidiary ownership requirements under the Fair Trade Act. The research service said the two systems could create a structure where one rule sets a minimum shareholding level while another limits how much a major shareholder may own. It stresse...