Alphabiz - Korea’s Financial Regulator to Review Stock Surge Ahead of Naver–Dunamu Merger Announcement

Photo: Dunamu

[Alpha Biz= Kim Jisun] SEOUL, Oct. 20 — South Korea’s top financial regulator said it will review the circumstances surrounding a sudden surge in Naver Corp. shares ahead of the company’s merger announcement with Dunamu Inc., operator of the cryptocurrency exchange Upbit.


During a parliamentary audit of the Financial Services Commission (FSC) on Sunday, Lee Eok-won, Vice Chairman of the FSC, described the situation as “undesirable” and stated that the regulator would consider launching an investigation.


On September 25, Naver announced that it would make Dunamu a subsidiary through a comprehensive stock swap with Naver Financial, its fintech arm. Following the announcement, Naver’s shares soared 11.4% compared with the previous day’s close.


However, Democratic Party lawmaker Min Byung-deok noted that the company’s trading volume and stock price began surging as early as 10:40 a.m., several hours before the 3:00 p.m. merger announcement, suggesting potential use of non-public information.
 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)