Security 'Governance' Mentioned by Japan's Kishida...Reconfirmation of Demand for Line Share Sale Interpretation Also

Analysis Diverges on Remarks Regarding Japan-Korea Summit 'Line Incident'
Trilateral Summit of Korea, Japan, and China on the 27th... Regularization of Three-Nation Consultative Body

President Yoon Suk-yeol shakes hands with Japanese Prime Minister Fumio Kishida at the Korea-Japan summit held on the 26th at the Yongsan Presidential Office in Seoul.
[Image source=Yonhap News]

President Yoon Suk-yeol and Japanese Prime Minister Fumio Kishida directly brought the 'Line Yahoo incident' to the bilateral meeting table. On the 26th, during a bilateral meeting with Prime Minister Kishida, who visited Korea to attend the 9th Korea-Japan-China Summit, President Yoon stated for the first time, "I understand that it is not a demand to sell shares to the domestic company Naver," drawing attention to the direction of the Line Yahoo incident. Prime Minister Kishida responded by saying, "The Korean and Japanese governments have cooperated while communicating well from the early stages of this issue and will continue to communicate closely," concluding the meeting for the time being. However, given the complex interests surrounding Line Yahoo, it is interpreted that a new phase has begun.

In particular, it is notable that President Yoon raised the Line Yahoo incident first during the bilateral meeting. Until now, President Yoon had maintained the position that "the Line incident is a matter separate from diplomatic issues," but he mentioned, "It is necessary to manage it well so that it does not become an unnecessary issue between the two countries in the future." The industry is paying attention to Prime Minister Kishida's remarks, as the controversy was triggered by the administrative guidance from Japan's Ministry of Internal Affairs and Communications, making the Japanese government's will important.

Prime Minister Kishida explained the administrative guidance as "a request to review security governance regarding the security leak incident." This has been interpreted as a reaffirmation of the demand to sell Line Yahoo shares. If the focus were solely on resolving security issues, there would be no reason to use the term 'governance.' Professor Hosaka Yuji of Sejong University's College of Liberal Arts, an expert on Japan, said, "In the short term, it seems that SoftBank intends to secure even 1% more shares and completely absorb Line Yahoo within two years," adding, "Although it was mentioned within the range that does not provoke Korea-Japan relations, the Liberal Democratic Party's stance on this remains firm." Currently, Naver and SoftBank each hold half of the shares of A Holdings, the largest shareholder of Line Yahoo. If SoftBank acquires even one share of A Holdings, it will secure management rights.

"Both countries confirm fundamental positions... sale discussions become more complicated"

On the other hand, there is an argument that the two countries only confirmed their fundamental positions. By only confirming fundamental positions and closing the issue, the sale discussions have become more complicated. Professor Kim Yong-jin of Sogang University's Business Administration Department predicted, "If the two leaders had provided a clue, it would be easier to seek a solution than payment, but for now, the future practical discussions will become more complex and difficult." Naver, holding the key, remains silent. Naver said, "We are continuously considering the best outcome for the company."

President Yoon Suk-yeol is speaking at the 9th Korea-Japan-China Summit held at the Blue House State Guesthouse on the 27th. [Image source=Yonhap News]

That morning, President Yoon held the 9th Korea-Japan-China Summit at the Blue House State Guest House with Prime Minister Kishida and Chinese Premier Li Qiang. It was the first Korea-Japan-China Summit in 4 years and 5 months since the 8th meeting held in Chengdu, China, in 2019. In his opening remarks, President Yoon said, "I hope that through the summit after 4 years and 5 months, the cooperation among the three countries will be pursued more steadily," and added, "Difficult issues in bilateral relations can also be resolved through trilateral cooperation." He also emphasized, "I hope that on the solid foundation of trilateral cooperation, we can expand cooperation with regional partners."

He continued, "The driving force of trilateral cooperation is above all the support of the people," and said, "We must strive to improve the health, safety, living standards, and quality of life of the people through trilateral cooperation. We should pursue practical cooperation measures that the people of the three countries can feel directly."

President Yoon expressed hope that "the three countries will work together to respond to global challenges," adding, "As the three countries currently serving as non-permanent members of the United Nations (UN) Security Council, I hope we can pool wisdom and strength in the face of global complex crises and geopolitical conflicts to contribute together to international peace and prosperity."

After the meeting, the Korea-Japan-China leaders issued a joint declaration and agreed to regularize the trilateral summit and other trilateral consultative bodies. They agreed to strengthen the momentum of trilateral cooperation by regularizing the trilateral summit to ensure that more than 70 intergovernmental consultative bodies, including 21 ministerial-level consultative bodies, operate smoothly and substantively. They also discussed cooperation measures in six areas: ▲people-to-people exchanges ▲sustainable development through climate change response cooperation ▲economic and trade cooperation ▲health and aging response cooperation ▲science and technology digital transformation cooperation ▲disaster and safety cooperation. They set a goal to achieve 40 million people-to-people exchanges among the three countries by 2030 and decided to actively support the people-to-people exchange program 'Campus Asia.'

President Yoon Suk-yeol is delivering a speech at the 8th Korea-Japan-China Business Summit held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 27th.
[Image source=Yonhap News]

Afterwards, the Korea-Japan-China leaders attended the '8th Korea-Japan-China Business Summit' held at the International Conference Hall of the Korea Chamber of Commerce and Industry, each delivering speeches and encouraging businesspeople. At the Business Summit, President Yoon emphasized revitalizing regional trade and investment among the three countries. In his keynote speech, President Yoon said, "The trilateral cooperation that began in 1999 marks its 25th anniversary this year," and evaluated, "The past 25 years have been the most intimate and mutually beneficial period of cooperation in the thousands of years of exchanges among the three countries, achieving economic and cultural prosperity." He added, "Governments and companies of the three countries should further activate regional trade and investment based on mutual respect and trust and jointly respond to global issues such as climate change beyond Northeast Asia." He also said, "We must strengthen cooperation for inclusive and shared growth with 'Global South' countries."

The event was jointly hosted by the Korea Chamber of Commerce and Industry, the Japan Business Federation, and the China Council for the Promotion of International Trade. The Korea-Japan-China Business Summit started in 2009 and marked its 8th session this year, held for the first time in 4 years and 5 months since December 2019 in Chengdu, China.

From the government and the presidential office, Minister of Trade, Industry and Energy Ahn Duk-geun, Minister of Foreign Affairs Cho Tae-yeol, National Security Office Chief Jang Ho-jin, Senior Secretary for Economic Affairs Park Chun-seop, and First Deputy Director of the National Security Office Kim Tae-hyo attended. About 240 people, including Korea Chamber of Commerce and Industry Chairman Chey Tae-won, Japan Business Federation Chairman Tokura Masakazu, China Council for the Promotion of International Trade Chairman Ren Hongbin, and businesspeople from the three countries, participated.