Woori Technology to Exit Dunamu Stake After Nine Years

Woori Technology Investment, a South Korean venture capital firm, is planning to sell its nine-year stake in Dunamu, the parent company of crypto exchange Upbit. This decision comes after a failed coup in South Korea.

Background and Stake Value

Woori holds a 7.22% stake in Dunamu, valued at approximately 425.3 billion KRW (over $300.7 million) at current over-the-counter (OTC) market prices. Initially acquired in 2015 for 5.5 billion KRW, this investment has yielded a return of around 73 times. The book value of the stake is reported at 593.9 billion KRW, 108 times the original investment.

Sale and Potential Investors

The sale is expected to be conducted via a block deal, a method allowing large shareholders to transfer stocks before or after market hours without impacting market prices. Discussions suggest the sale price could exceed the current market value, with a potential return of around 100 times or more. Woori is reportedly considering attracting international investors due to challenges in raising funds from domestic investors, largely resulting from regulatory restrictions.

Market Context and Recent Events

The decision to sell follows a recent failed coup attempt in South Korea. The country’s president, Yoon Suk Yeol, declared martial law in response to accusations of pro-North Korean sentiment among parliament members. However, the National Assembly swiftly nullified the declaration, lifting the martial law within hours.

As the cryptocurrency market continues to evolve, Woori’s exit from Dunamu highlights the complexities of investing in this space. With regulatory restrictions and market fluctuations, investors must be cautious and informed.

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