South Korean crypto exchange Upbit is about to be acquired by internet giant Naver, according to a report.

The deal would bring Upbit's parent Dunamu under the umbrella of Naver Financial, making Dunamu a full subsidiary of Naver's financial arm, the report said.

Upbit is one of the largest crypto exchanges in the crypto friendly country, while Naver operates multiple internet based services in South Korea, including Naver Pay.

The deal is likely to be a stock swap deal with Naver Financial issuing new shares in the crypto exchange for Dunamu's current shares, the report added.

Shares of Naver jumped over 7% to korean won 246,000 ($175) after reports of the Upbit acquisition came out.

Reports of the deal come in the wake up of the South Korean government pushing to establish a framework for won-pegged stablecoins in the country.

Naver and Dunamu were not immediately available for comment.