Kang Dohyun, 2nd Vice Minister, Official Government Statement
"Line Yahoo Management Rights Already with SoBang"
"Protecting Naver's Management Interests... Frequent Discussions"
"Will Strongly Respond to Discriminatory and Unfair Measures"
The government officially expressed regret to the Japanese government regarding the so-called 'Line incident.' It also stated its intention to support Naver in responding to the situation based on autonomous judgment and decision-making.
Kang Dohyun, Vice Minister of the Ministry of Science and ICT, held a briefing on the Line incident at the Government Seoul Office at 3 p.m. on the 10th. This was just one hour after Naver announced that it was "keeping all possibilities open, including the sale of shares, and consulting with SoftBank."
"Recognizing Pressure to Sell Shares... Expressing Regret to Japanese Government"
Vice Minister Kang said, "The Japanese government confirmed that there was no expression in the administrative guidance to sell shares, but we express regret that our company perceives it as pressure to sell shares."
He explained, "The holding company of Line Yahoo, A Holdings, is owned 50:50 by Naver and SoftBank, but considering the board composition, the management rights of Line Yahoo have effectively been under SoftBank's control since 2019."
Vice Minister Kang also conveyed that Naver had been facing difficulties in integrating its technology and know-how into Line Yahoo and had been reviewing various alternatives, including the sale of shares. He stated, "To protect Naver's business interests, these facts were not disclosed."
He explained that since November last year, when a breach incident at Naver Cloud was reported, the government had been discussing response measures with Naver both face-to-face and via phone on a regular basis. On the 26th of last month, through the Korean Embassy in Japan, they met with Japan's Ministry of Internal Affairs and Communications to verify the facts about the administrative guidance, and on the 29th, they held a meeting with Naver to discuss the government's response direction.
On the afternoon of the 9th, people are entering Tokyo Garden Terrace Kio Tower in Chiyoda Ward, Tokyo, Japan, where Line Yahoo is located. [Image source=Yonhap News]
He added, "If Naver had judged that it was subjected to unfair discrimination or pressure, the government's response so far would have been different," and said, "The government sought ways to maximize Naver's interests."
"Respecting Naver's Position... Supporting Autonomous Decision-Making"
The government stated that it will continue to respect Naver's position to the fullest extent and respond to the situation through joint efforts among ministries.
When asked about the government's role, Vice Minister Kang replied, "We will support Naver so that autonomous decisions can be made." He said, "The government’s mission is to thoroughly respect Naver's position and create an environment where decisions can be made based on Naver's autonomous judgment and decision-making."
He added, "Going forward, the Ministry of Science and ICT will thoroughly share Naver's position and details with the Ministry of Foreign Affairs, the Ministry of Trade, Industry and Energy, and others, and if there is a need for government-level response, we will jointly respond together."
Finally, he emphasized, "We will ensure that our companies, including Naver, do not face any unreasonable treatment related to overseas business or investment," and said, "We will firmly and strongly respond to discriminatory measures against our companies and unfair actions against their will."
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