Hana Bank’s Acquisition of Dunamu Stake
Hana Bank is seeking to acquire a 6.55% stake in Dunamu, the company behind the Upbit cryptocurrency exchange, prompting a review by South Korea’s Financial Services Commission (FSC). This investigation aims to determine whether the deal complies with existing regulations designed to keep banking and commercial enterprises separate.
According to reports from iNews24, Hana Bank will be purchasing these shares from Kakao Investment rather than directly from Dunamu, though FSC officials indicate that the nature of the investment is similar to a direct stake in Dunamu itself.
Regulatory Review and Banking-Commerce Separation Laws
The crux of the regulatory review lies within South Korea’s banking-commerce separation laws, which restrict banks from owning interests in specific non-financial sectors. As cryptocurrency exchanges are classified differently from traditional financial institutions, their regulatory status remains particularly ambiguous.
Since 2017, South Korean authorities have implemented restrictions preventing financial firms from acquiring, holding, or investing in virtual assets and stakes in related exchanges. According to an FSC representative, there are currently no plans to relax these regulations.
Implications of the Deal
Hana Bank’s deal with Kakao Investment, valued at around 1 trillion won (approximately $700 million), has significant implications for both parties. Following the sale, Kakao Investment’s stake in Dunamu will decrease to 4.03%, while Hana will ascend to become Dunamu’s fourth largest shareholder.
The transaction is on track to finalize by June 15, allowing Hana Bank to gain direct exposure to Upbit, which reportedly accounts for over 70% of South Korea’s cryptocurrency trading volume. Furthermore, the deal aligns with a larger trend of financial institutions and technology firms in Korea increasingly engaging with the cryptocurrency sector.
Dunamu’s Merger and Future Regulations
In addition to Hana Bank’s endeavors, Dunamu is currently navigating its proposed merger with Naver Financial. This all-stock transaction, valued at approximately 15.13 trillion won, is still under review by regulators.
As the landscape of digital finance evolves, South Korea is also preparing to introduce new regulations for tokenized securities, with detailed guidelines expected to be announced in July, ahead of amended laws to be enacted in February 2027.
