Dunamu Inquired About US Accounting Standards, Says "No Decision Made" on Nasdaq Listing Rumors

Dunamu, which operates Upbit, the largest virtual asset exchange in Korea, reportedly made inquiries to an accounting firm regarding U.S. accounting standards. While some observers speculate that this move may be in preparation for a potential U.S. listing, Dunamu has denied such speculation.

According to the investment banking (IB) industry on August 24, Dunamu inquired with EY Hanyoung about the differences between Korean and U.S. accounting standards.

Since September of last year, Dunamu has been pursuing a comprehensive stock swap with Naver Financial. The two companies have agreed to value Dunamu at approximately 15 trillion won and Naver Financial at around 5 trillion won, with a planned exchange ratio of 2.54 shares of Naver Financial for every one share of Dunamu. Additionally, Naver Financial intends to proceed with a public listing following the share swap.

Some observers interpret this as a sign that Naver Financial may seek a listing on the U.S. NASDAQ in the form of American Depositary Receipts (ADR). This is because, in order to be listed in the U.S., it would be necessary to convert financial statements to comply with U.S. accounting standards. As Naver, the parent company of Naver Financial, is already listed on the KOSPI, a domestic listing of Naver Financial or Dunamu (which will become an affiliate) would constitute a dual listing. Considering the additional procedures required, a U.S. listing is being considered as an alternative.

An IB industry official said, "Rather than preparing for both domestic and U.S. listings simultaneously, companies usually compare the economic benefits and focus on one. If US GAAP is being prepared only as a backup, it is not a particularly meaningful level of preparation."

Regarding this, Dunamu stated, "We plan to pursue a listing once the comprehensive share swap is completed; however, no decision has been made on which country to target for the listing." The company also explained, "There has been a misunderstanding; our inquiry was simply about the differences between Korean and U.S. accounting standards."

This content was produced with the assistance of AI translation services.