Samsung Subsidiaries to Acquire $408 Million Stake in Leading South Korean Crypto Exchange

Three subsidiaries of Samsung are set to acquire a total of 4% of Dunamu, the operator of South Korea's largest cryptocurrency exchange, Upbit, in a deal valued at $408 million. This acquisition reflects a significant investment in the cryptocurrency sector by Samsung, which has been active in the space since introducing its digital asset wallet in 2019.

Transaction Breakdown

The deal, reported by the Korea Herald, includes Samsung Securities obtaining a 2% stake for approximately 306 billion won ($200 million) from affiliates of Kakao. Samsung Card and Samsung SDS will each acquire a 1% stake. The transaction is expected to close on June 19.

Kakao's Divestment

This investment comes as Kakao has been divesting its holdings in Dunamu, having sold around $1.5 billion worth of equity recently. Just prior to this deal, Kakao sold a 6.55% stake to Hana Bank for about 1 trillion won, followed by a 600 billion won stake to Hanwha Investment and Securities.

Market Reaction

Following the announcement of the acquisition, Samsung Securities shares fell by 2.7%, while Samsung SDS dropped 5%. In contrast, Samsung Card experienced a minor increase of 0.21% and Kakao shares decreased by 1%.

As the cryptocurrency market continues to experience challenges, Kakao has shifted its focus towards artificial intelligence initiatives, developing its "Kanana" AI models and collaborating with OpenAI, signaling a strategic pivot in its investment approach.