Government "Line Incident, Regret to Japan... Strong Response if Discriminatory Measures Taken" (Update)

2nd Vice Minister, Briefing on Line Incident Issues
"Effectively, SoftBank Leads Management Rights"
"Naver Frequently Discusses with Government"

Our government has officially expressed regret to the Japanese government regarding the so-called 'Line incident.'

Kang Do-hyun, Vice Minister of Science and ICT [Image source=Yonhap News]

Kang Do-hyun, the 2nd Vice Minister of the Ministry of Science and ICT, held a briefing at the Government Seoul Office on the 10th and stated, "The Japanese government confirmed that there was no expression in the administrative guidance to sell shares, but we express regret over the fact that it is being perceived as pressure on our company to sell shares."

Vice Minister Kang said, "We have respected Naver's position so far and have been waiting for Naver to make decisions based on its mid- to long-term business strategy."

He added, "According to what the government has identified, the shares of A Holdings, the holding company of Line Yahoo, are split 50:50 between Naver and SoftBank, but considering the composition of the board of directors, the management rights of Line Yahoo have been effectively under SoftBank's control since 2019."

Vice Minister Kang also conveyed that Naver had been experiencing difficulties in applying its technology and know-how to Line Yahoo and had been reviewing various alternatives, including selling shares.

He stated, "These facts were not disclosed in order to protect Naver's business interests."

Vice Minister Kang explained that since the Naver Cloud breach incident was reported in November last year, they have frequently discussed response measures both face-to-face and via phone.

On the 26th of last month, through the Korean Embassy in Japan, they met with the Japanese Ministry of Internal Affairs and Communications to confirm the facts regarding the administrative guidance, and on the 29th, they held a meeting with Naver to discuss the government's response direction.

Vice Minister Kang emphasized, "We will ensure that our companies, including Naver, do not receive any unreasonable treatment related to overseas business and investment," and added, "We will firmly and strongly respond to any discriminatory measures or unfair actions against our companies that go against their will."