The deal marks a break from Hana’s cautious acquisition stance and links the group with Korea’s top digital asset operator.
Hana is seeking both stronger foreign-exchange competitiveness and future investment gains ahead of a possible Nasdaq listing.
Ham Young-joo, Chairman of Hana Financial Group
[Insight Korea = Park Ji-hun]
Hana Financial Group Chairman Ham Young-joo has made a surprise large-scale investment in Dunamu, South Korea’s leading digital asset operator.
According to financial industry sources on the 15th, Hana Bank held a board meeting on the 14th and approved the acquisition of 2.284 million Dunamu shares held by Kakao Investment for about 1.0033 trillion won. Once the transaction is completed, Hana Bank will hold a 6.55 percent stake in Dunamu, becoming its fourth-largest shareholder.
The deal is expected to become the third-largest investment in another company in Hana Financial Group’s history. It follows the acquisition of a 51 percent stake in Korea Exchange Bank for 3.9156 trillion won under former Chairman Kim Seung-yu and the purchase of a 15 percent stake in the Bank for Investment and Development of Vietnam, or BIDV, for 1.0444 trillion won during the tenure of former Chairman Kim Jung-tai.
Breaking From a Conservative M&A Stance
Industry observers see the investment as a decisive bet by Chairman Ham. Woori Financial Group’s acquisition of Tongyang Life Insurance and ABL Life Insurance, or KB Financial Group’s capital injection into KB Securities to strengthen nonbank subsidiaries, can be viewed as conventional strategies. By contrast, Hana Financial has chosen to commit a large sum to a strategic alliance with a major digital asset operator.
The decision is drawing particular attention because Ham has generally maintained a conservative approach to acquisitions and investments since taking office. Hana Financial was selected in 2023 as the preferred bidder for KDB Life Insurance but abandoned the deal at the final stage after judging the company’s financial structure to be weak. In January this year, Hana also reviewed the acquisition of Yebyeol Insurance, the bridge insurer for MG Non-Life Insurance, but did not participate in the main bidding process because of concerns over the possibility of large additional capital injections.
Hana Financial described the stake purchase as “a strategic decision to accelerate financial innovation based on digital assets.” By joining hands with Dunamu, the operator of South Korea’s largest digital asset exchange, Hana aims to lead the expansion of the blockchain ecosystem and build a future innovation model for the digital asset industry.
Industry analysts say the investment also reflects Hana Financial’s intention to take its traditional strength in foreign exchange to a “super-gap” level. Hana Bank secured a dominant position in trade finance and foreign exchange through its 2012 acquisition of Korea Exchange Bank, but it has recently faced intensifying competition from rivals.
At the end of last year, Hana Bank’s foreign currency deposits stood at 43 trillion won on a won-converted basis, up 72.8 percent from 2019. Over the same period, foreign currency deposits at Woori Bank and Shinhan Bank rose 107.4 percent and 108.8 percent, respectively, to 35 trillion won and 27 trillion won. Hana remains ahead in absolute size, but the pace of growth among competitors is significant.
Foreign currency deposits are a supplementary indicator of trade finance and foreign-exchange competitiveness. Exporters receive payments in foreign currencies such as dollars, while importers settle transactions in foreign currency. The more corporate clients a bank secures with frequent foreign-exchange transactions, the more its foreign currency deposits grow. Those deposits form a foundation for expanding foreign currency liquidity, foreign currency loans and overseas remittance businesses.
Competition has also intensified in the trust market. Hana Bank, which has led innovation in the trust business, became the largest bank by trust assets under custody after its merger with Korea Exchange Bank and remained in the top tier for years. Recently, however, it has been trading places with rival banks.
In that context, Hana’s partnership with Dunamu can be read as a move to prepare for the growth of blockchain-based overseas remittances and the institutionalization of won-denominated stablecoins. If overseas remittances and trade settlements are eventually conducted through digital assets, Hana Financial could use Dunamu’s technology to widen the gap with rival banks.
The partnership could also create significant synergies in wealth management, beyond corporate finance. Hana Financial and Dunamu have built trust through joint research in anti-money laundering, or AML, and know-your-customer, or KYC, compliance. Hana plans to connect its asset management capabilities in funds, pensions and trusts with Dunamu’s digital asset capabilities to create a new growth axis.
At a joint press conference held on Nov. 27 last year at NAVER 1784 in Seongnam, Gyeonggi Province, executives from NAVER, NAVER Financial and Dunamu delivered presentations.
Targeting Both Foreign-Exchange Advantage and Investment Returns
Industry observers say another goal of the investment is to maximize investment value. Dunamu and NAVER Financial are currently preparing for a Nasdaq listing. Their expected valuation is estimated at a minimum of 15 trillion won.
The two companies previously agreed to a comprehensive share swap under which Dunamu shareholders would receive 2.54 NAVER Financial shares for each Dunamu share, making Dunamu a wholly owned subsidiary of NAVER Financial. Hana Bank’s 6.55 percent stake in Dunamu is expected to be converted into roughly a 5 percent stake in NAVER Financial.
To establish a path toward a Nasdaq listing, the companies will need global performance, international credibility and justification for their valuation. That is also why Dunamu and NAVER Financial paid attention to Hana Financial.
Hana Financial has nearly 200 global network points across 27 regions around the world. Its foreign-exchange capabilities and international financial network, accumulated through the acquisition of Korea Exchange Bank, are also considered strengths. By leveraging areas such as trade finance, Hana Financial could help drive Dunamu’s non-exchange business performance and support its corporate value.
Hana Financial is also expected to help ease some market concerns over Dunamu’s regulatory risks and business stability. To win a high valuation in U.S. capital markets, Dunamu will need to present itself not merely as an exchange operator, but as a digital finance platform connected to the regulated financial system.
“If Dunamu is considering a Nasdaq listing, it needs a player that can support its desired valuation of around 15 trillion won and reinforce its credibility as a digital asset company,” a financial industry official said. “In that respect, Hana Financial Group was likely one of the most suitable strategic partners.”
- This article was translated by ChatGPT. (이 기사는 챗GPT가 번역했습니다.)
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