South Korea’s top securities firm Mirae Asset Daewoo Co. and leading internet portal operator Naver Corp. exchanged treasury shares worth 500 billion won ($440 million) for a strategic partnership on digital finance business and joint investment in venture enterprises, the two companies said on Monday.

Under the deal, Mirae Asset Daewoo bought 563,063 stocks amounting to 1.71 percent stake in Naver worth 500 billion won based on Naver stocks’ closing price of Monday, in a block trade before Tuesday’s market opening. In return, Naver bought 47,393,364 shares or 7.11 percent stake in Mirae Asset Daewoo also worth 500 billion won.

The two firms said they plan to hold each other’s stakes for an unspecified long period to maintain their mid-to-long term strategic alliance. Shares of Mirae Asset Daewoo closed Tuesday at 10,600 won, up 0.47 percent or 50 won from the previous session, while those of Naver fell 2.14 percent to end at 869,000 won in Seoul trading.

Through the partnership, the two companies aim to pursue digital finance business at home and abroad, conduct a joint research on artificial intelligence (AI) technology and invest in domestic and foreign startups. They will soon announce a detailed plan on their collaboration, according to sources. Naver is said to be readying to venture into online-only banking business.

Mirae Asset Daewoo expects the alliance would help it expand its presence in the global digital finance market especially in South East Asia. “The strong partnership with the nation’s top internet firm Naver would give us an opportunity to reinforce our business in the domestic and global market through convergence of our finance business with information technology amid the accelerating fourth industrial revolution,” said Kim Dae-hwan, head of business innovation division at Mirae Asset Daewoo.

Naver also expects Mirae Asset Daewoo’s extensive global business network would help it tap into new markets. “The country’s top brokerage firm Mirae Asset Daewoo owning a broad network in nine countries around the world is the best partner for us to collaborate on various business sectors,” said Naver Chief Financial Officer Park Sang-jin.

By Han Woo-ram and Cho Hee-young

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