South Korea Reacts to Japanese Pressure on Line Messenger App
In the bustling city of Seoul, discussions over the fate of a beloved messaging application have taken center stage. The Second Vice Science Minister, Kang Do-hyun, recently addressed concerns surrounding the future of Line messenger, a platform developed by South Korea’s internet titan, Naver. Kang’s comments followed confirmation from Japan’s SoftBank of ongoing dialogues regarding their capital ties with LY Corp., the entity behind Line’s operations. The science ministry has voiced its regret over what it perceives as undue pressure from the Japanese government on a Korean enterprise.
During a press briefing, Kang emphasized that South Korea would not stand idly by in the face of what he deemed discriminatory actions against a national corporation. He assured that the government was in active discussions with Japan on the issue and pledged robust support to Naver, should they choose to retain their stake in LY Corp. With a commitment to bolster security systems if needed, the ministry’s support appears unwavering.
The corporate landscape of LY Corp. reveals a joint venture, A Holdings, owned equally by Naver and SoftBank. Kang pointed out the practical managerial reins held by SoftBank since 2019 and highlighted Naver’s ongoing evaluation of its investment in the venture amidst challenges in infusing its technology and business acumen into the Japanese firm.
Naver too has chimed in, confirming its openness to various outcomes, including the possibility of parting with its shares in LY. The company expressed its apologies to users affected by last year’s data breach and promised concerted efforts with LY and SoftBank to enhance service quality.
Choi Soo-yeon, Naver’s CEO, remarked on the unusual nature of Japan’s actions but assured that any decision would align with the company’s strategic business vision. The incident in question involved the leakage of user data linked to a cyberattack on Naver Cloud Corp., with over 300,000 records compromised. This event prompted LY to announce security fortification initiatives, including a separation from Naver’s systems.
Recent developments have seen LY’s president, Takeshi Idezawa, communicate through an interpreter about the termination of service and business outsourcing to Naver. Additionally, a significant departure from LY’s board was announced as Shin Jung-ho, a pivotal South Korean figure in the company, stepped down.
The Japanese government’s stance has sparked criticism within South Korean circles, perceived by some as an attempt to limit foreign influence over a platform widely embraced in Japan. Line, launched by Naver in 2011, boasts a substantial user base, with 96 million monthly active users in Japan alone, representing a significant chunk of the nation’s populace. The app’s popularity extends across Asia, with millions of users in Thailand and Taiwan.
