Upbit's Parent Company Gets a Regulatory Red Pen on Merger Paperwork

South Korea's Financial Supervisory Service has told Dunamu to redo its homework on the Upbit-Naver Financial merger disclosure. The FSS flagged Dunamu's March 30 report for containing "important omissions or false statements" - never a good look when regulators are involved.

The regulator specifically called out two problem areas: the "plan for future company restructuring" and "important matters related to other investment judgments." Apparently, Dunamu initially said no specific restructuring decisions had been made post-stock exchange, with future decisions to be disclosed "in accordance with regulations" whenever they happen. Revolutionary stuff.

The share value ratio between Dunamu and Naver Financial? A precise 3.064569:1. Naver Financial will remain a consolidated subsidiary of Naver post-merger.

Dunamu did warn investors about potential delays or cancellation due to Fair Trade Commission approval, changes to Naver Financial's major shareholders under the Credit Information Act, and alterations to Dunamu's major shareholder status under the Specific Financial Information Act. Also potentially throwing a wrench in the works: the ongoing legislative process for the Digital Asset Framework Act, which faced delays and was even left off a key government meeting agenda in mid-March.

Meanwhile, Korea Investment & Securities is eyeing Coinone, following Mirae Asset Group's acquisition of Korbit. Coinone sits in third place among Korean exchanges with double-digit market share, but has posted losses for three consecutive years. CEO Cha Myung-hoon currently holds 53.44%, and financial authorities are pushing to limit major shareholder stakes.

Market watchers suggest Korea Investment & Securities would need to grab around 20% of shares to enter the deal without triggering management rights concerns. The Korbit acquisition by Mirae Asset Consulting for approximately 133 billion won (about $93 million) should serve as the pricing benchmark.

Coinone acknowledged receiving various collaboration proposals amid heightened virtual asset business interest, though specifics remain undetermined.