Naver (NAVER) CEO Choi Soo-yeon said on the 27th that nothing has been decided on Nasdaq listing for Naver subsidiary Naver Financial, and the likelihood of a merger between Naver and Naver Financial is low.
Chairman Lee Hae-jin of Naver, Chairman Song Chi-hyung of Dunamu, CEO Choi, CEO Oh Kyoung-suk of Dunamu, and CEO Park Sang-jin of Naver Financial held a press briefing that day at the Naver 1784 Sky Hall in Seongnam, Gyeonggi Province, and explained the background and future plans for the Naver Financial–Dunamu merger. The following is a Q&A with them.
—What led you to decide on a merger with Dunamu.
(Chairman Lee) "It was reported that I have a long-standing friendship with Chairman Song, but we have only properly met for two years. Chairman Song is a former genius developer with deep technical expertise and a strong will for research. I proposed it because working together could contribute not only to the business but also to the development of Naver and Korea's software (SW) industry."
—The stock exchange ratio between Dunamu and Naver Financial was 1 to 2.54, which differed from market expectations.
(CEO Oh) "There was confusion because the stock exchange ratio and the corporate value ratio were different. The stock exchange ratio and the corporate value assessment were evaluated by objective accounting firms and investment banks (IB) and decided through discussions. We will enhance shareholder value while communicating with shareholders."
—How will the boards of Naver and Dunamu be formed going forward.
(CEO Park) "Nothing is final, but Naver Financial's composition will change, and key executives including Chairman Song Chi-hyung are likely to come and manage. Dunamu is conducting an independent business from Naver Financial, so it will be structured accordingly."
—Naver said it will invest 10 trillion won over five years. Which corporations and sectors are the targets.
(CEO Choi) "We are considering prioritizing investment in graphics processing units (GPUs), which are the foundation of AI and Web3. Since talent makes this possible, we are considering bold investments in talent development. As platform corporations that can only do business when the ecosystem is robust, Dunamu and Naver are also considering investments in startups."
—There is talk that Naver Financial could conduct an initial public offering (IPO) on Nasdaq.
(CEO Choi) "No restructuring plan has been set, including a Nasdaq listing for Naver Financial. Even if we consider a future listing, we will proceed by prioritizing the enhancement of shareholder value—that is, the essence and goal that corporations should pursue most. We recognize the social consensus related to duplicate listings. We see a low likelihood of a merger between Naver and Naver Financial."
—Chairman Song is emerging as Naver's next leadership.
(Chairman Lee) "Chairman Song is someone who can greatly contribute to Naver's technological prowess and the discovery of new technologies. I think he is an excellent junior, but it is not the stage to talk about next leadership."
—What are the specific global expansion plans.
(Chairman Lee) "It is important that Naver Financial and Dunamu have become one company. Dreams and a mission for global are Naver's biggest foundation. I believe Web3 and AI technologies will be applied to all services going forward."
—Is there a corporation that Dunamu is benchmarking.
(Chairman Song) "In the global market, we mentioned Coinbase and Circle (USDC issuer) as benchmarking targets. What pains me is that as recently as the year before last, Upbit was bigger, and even last year Upbit's transaction volume was better. The difference seems to be that in the United States, the underlying environment is different, with stablecoins, Base, and bond tokenization. Globally, Web3 and fintech are moving toward convergence, and that is what led Naver and Dunamu to join forces."