Hana Bank's 1 Trillion Won Investment in Dunamu Triggers Intensive Review by Financial Authorities Over Potential Violation of 'Separation of Banking and Commerce' Principle

On May 18, 2026, South Korean financial authorities launched a detailed review of Hana Bank's acquisition of a stake in Dunamu, creating tension in the virtual asset market. The investigation aims to determine whether Hana Bank's decision to acquire a 6.55% stake in Dunamu, the operator of Upbit, violates the current principle of 'separation of banking and commerce.' The investment, valued at approximately 1 trillion won, is considered the largest-ever instance of a traditional financial institution entering the virtual asset sector, drawing significant industry attention.

The Financial Services Commission (FSC) is conducting an investigation, leaving open the possibility that Hana Bank's move may conflict with regulations limiting the ownership of non-financial subsidiaries under the Banking Act. In particular, concerns that the volatility of the virtual asset market could undermine the stability of the banking system are serving as a key background for this review. The outcome of this regulatory review is expected to be a significant turning point in determining the scope of digital asset business expansion for the domestic banking sector in the future.

On May 14, 2026, Hana Bank held a board meeting and unanimously approved the purchase of 2.28 million shares of Dunamu held by Kakao Investment for approximately 1 trillion won ($670 million). According to a disclosure on May 15, the transaction will be conducted through a sale of existing shares, and after the acquisition, Hana Bank will become the fourth-largest shareholder of Dunamu. The Virtual Asset Division of the FSC immediately began a legal review following the disclosure.

The Financial Services Commission is closely examining whether Hana Bank's indirect ownership of a stake in Dunamu violates the regulatory principle of separating finance and virtual assets.

Article 37 of the current Banking Act prohibits banks from owning more than 15% of the shares of a non-financial company and applies even stricter standards to specific industries such as virtual asset exchanges. Financial authorities believe that if Dunamu is classified as industrial capital, Hana Bank's acquisition of the stake could undermine the intent of the principle of separation of banking and commerce. Furthermore, the authorities' conservative stance on banks' exposure to virtual assets is expected to be strongly reflected in this review.

Hana Bank's Strategic Move Towards Next-Generation Financial Services

Hana Bank explained that this investment is part of a strategic partnership to strengthen its competitiveness in next-generation financial services, going beyond simple equity acquisition. The bank plans to utilize Dunamu's technological capabilities to develop KRW-pegged stablecoins and launch blockchain-based overseas remittance and Security Token Offering (STO) businesses in earnest. In particular, Upbit's overwhelming market share and technical infrastructure are expected to become core assets for the digital transformation pursued by Hana Bank.

• Late 2025: Hana Bank and Dunamu begin joint development of a SWIFT foreign currency remittance system based on Giwa Chain
• February 2026: Successful completion of Proof of Concept (PoC) for the blockchain remittance system
• April 2026: Signing of a tripartite strategic business agreement with POSCO International
• May 18, 2026: Confirmation of the Financial Services Commission's official commencement of regulatory review

If this transaction is completed, Hana Bank will be able to exert indirect influence over overall management as a major shareholder of Dunamu. This will further solidify Upbit's dominant position in the virtual asset market while serving as an opportunity to drastically expand Hana Financial Group's fintech portfolio. The market expected this investment to contribute to enhancing the corporate value of Hana Financial Group, but stock prices are showing mixed trends as regulatory risks have come to the fore.

Industry experts analyze that this review carries a significant message for the entire Korean financial sector, beyond just being an issue for Hana Bank. If financial authorities disallow this investment or impose strict conditions, other commercial banks' plans to enter the virtual asset market will inevitably require full revision. This is likely to remain a symbolic case illustrating the conflict between the pace of innovation in the Korean fintech industry and regulation.

The final closing date for this equity acquisition is scheduled for June 15, 2026. Hana Bank and Kakao Investment are continuing preparations to complete the transaction while awaiting the results of the authorities' review, but the possibility of contract termination cannot be ruled out if legal hurdles are not resolved. The Financial Services Commission maintains the position that it will conduct a legal review promptly to minimize market uncertainty.

Even if financial authorities approve the equity acquisition, it is highly likely that additional conditions will be attached to limit the scope of the bank's involvement in the virtual asset business. For example, methods such as restricting the exercise of voting rights or strengthening capital adequacy requirements for virtual asset-related risky assets are being discussed. Such conditional approval could serve as a compromise between the bank's will to innovate and the authorities' management of soundness.

Future Outlook and Market Challenges

In conclusion, Hana Bank's acquisition of a stake in Dunamu will be the largest experiment in Korean financial history combining traditional finance and virtual assets. The results of the review, expected in mid-June 2026, are likely to serve as a decisive turning point for redefining the domestic virtual asset regulatory framework in the future. Attention is focused on what kind of consensus will be reached between the private sector's will for financial innovation and the authorities' regulations that emphasize stability.