Choi Su-yeon: "Line Yahoo, No Short-Term Sale... Please Give Us Opportunity for Autonomous Decision" (Comprehensive)

Appearance of witnesses at the National Assembly Science and ICT Committee on the 2nd
Opposition proposes government audit motion
"Emphasis on private sector's autonomous judgment"

Choi Su-yeon, CEO of Naver, stated regarding the so-called 'Line Yahoo incident' that "it has been decided not to proceed with a sale in the short term."

[Image source=Yonhap News]

On the 2nd, CEO Choi appeared as a witness at the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee and, in response to a question from Lee Hae-min of the Justice Innovation Party, said, "We will conclude this administrative guidance in order to properly separate the governance of security and the consignment relationship."

When Lee asked, "What about the long term?" CEO Choi replied, "It is difficult to give a definite answer regarding a company's mid- to long-term strategic decisions."

The largest shareholder of Line Yahoo is A Holdings, where Naver and Japan's SoftBank maintain a 50-50 shareholding structure. The two companies are currently negotiating share adjustments.

The issue originated last year when a personal information leak incident at Line Yahoo prompted Japan's Ministry of Internal Affairs and Communications to demand countermeasures, including a review of capital relations, through administrative guidance.

CEO Choi explained, "The cause was a security breach incident that occurred in the computer network operated on consignment by Naver Cloud," adding, "The main point of the administrative guidance is not about capital relations but about how to prevent recurrence."

Regarding Japan's administrative guidance, CEO Choi stated, "Because they hold a dual status as both the trustee and a shareholder, I interpreted it as an expression of concern that perhaps we control governance and thus the trustee cannot properly monitor."

[Image source=Yonhap News]

CEO Choi also emphasized the importance of 'autonomous judgment by private companies.'

Park Chung-kwon, a member of the People Power Party, asked CEO Choi about her current feelings, questioning whether she felt like a victim of political strife as a witness and whether she could be subject to a state audit.

On the same day, Hwang Jeong-ah of the Democratic Party proposed a resolution condemning Japan's intrusion into Line, and Lee Hae-min of the Justice Innovation Party proposed a resolution condemning the Japanese government and urging a state audit to investigate the government's diplomatic failures and the truth.

The Ministry of Science and ICT, the competent authority, was criticized for not responding actively to the Line Yahoo incident and is being held accountable. Both resolutions are scheduled to be discussed in the subcommittee of the Science, Technology, Information and Broadcasting and Communications Committee.

CEO Choi said, "This has been an opportunity to realize the public's expectations and interest in Naver's service and Japan's Line service," adding, "The management of a joint-stock company always does its best and thinks carefully for the benefit of the company and its shareholders." She further stated, "I hope an opportunity will be provided for the private sector to make autonomous judgments."

When Park asked about the meaning of the statement released by Naver in May, CEO Choi replied, "As a company, it contains the intention that private companies want to think autonomously and carefully about how to handle the Japanese market and important strategic assets for the benefit of shareholders, our employees, and users."