Naver Financial, the fintech subsidiary of Naver, South Korea's largest portal website operator, announced Wednesday that it will acquire Dunamu Inc., the operator of Upbit, South Korea's largest cryptocurrency exchange, making Dunamu a wholly owned subsidiary.

In a regulatory filing, Naver Financial stated that its board of directors approved the acquisition of Dunamu through a stock swap, paying 2.54 shares of Naver Financial stock for each share of Dunamu stock.

Upon completion of the transaction, Dunamu will be a subsidiary of Naver Financial, enabling Naver to expand its portfolio into the digital finance sector and strengthen its foothold in the rapidly growing blockchain services field.

Both companies are expected to seek shareholder approval before formally initiating the integration process.