Discussions Ongoing Between Korea and Naver Amid Japan’s Pressure
In the wake of reports that Japan has exerted pressure on Naver to divest its shares in its widely-used mobile messenger app, South Korea is engaging in detailed talks with the tech behemoth. Official sources revealed on Tuesday that these consultations are a response to Japanese government demands that LY Corporation, responsible for Japan’s beloved messaging service Line, transfer its stake to the SoftBank Group in Japan.
At the heart of this development is a recent incident involving a substantial leak of personal user data. Japanese media outlets have suggested that the government’s insistence on the sale is a direct consequence of this privacy breach. A Holdings, a joint venture equally owned by Naver and SoftBank, currently possesses a 65 percent ownership in LY Corp.
Korea’s foreign ministry has expressed its commitment to closely collaborating with Naver, honoring the company’s approach to the situation. Emphasizing a stance of fairness, the ministry has made it clear that it seeks to uphold non-discriminatory practices toward the Korean firm amidst ongoing dialogues with Japanese counterparts.
Japan’s Ministry of Internal Affairs and Communications, as reported by Kyodo news agency, has issued administrative guidance to LY in relation to the data leak. The guidance includes the controversial stake handover to SoftBank. This move has sparked criticism within Korea, stirring concerns over an attempt to diminish foreign involvement in Japan’s most popular online platform.
The impetus for Japanese authorities’ action appears to be the unauthorized exposure of personal data from over 300,000 Line users last year. In response to the unfolding events, Korea’s science ministry announced its intention to extend necessary support to Naver. It emphasized that the measures taken by Tokyo are not reflective of the broader state of bilateral relations between the two countries.
Diplomatic channels have been active, with Korean representatives conveying their country’s position to Japan via the embassy. This dialogue underscores the delicate balance of international business interests and national data security concerns.