Naver reaffirmed its position that it will not sell its equity in Line Yahoo in the short term.
Naver stated in an internal statement on this day, "Line Yahoo Corporation regularly reports on progress related to strengthening security governance quarterly in accordance with administrative guidance from the Japanese Ministry of Internal Affairs and Communications," and noted, "The report submitted on the 31st of last month included information indicating that the establishment of security governance at Line Yahoo is progressing well according to the previously disclosed plan." Additionally, it added, "The stance regarding the equity relationship between Naver and Line Yahoo remains the same as before."
Following a large-scale personal data leak incident in November 2023 involving Line Messenger, the Japanese Ministry of Internal Affairs and Communications issued administrative guidance last March to review the capital relationship between Naver and Line Yahoo. This led to demands for Naver to sell its equity in Line Yahoo, escalating into a diplomatic issue between the two countries. The largest shareholder of Line Yahoo is A Holdings, a joint venture established by Naver and SoftBank, with each holding 50% equity.
Line Yahoo has subsequently submitted quarterly regular reports to the Japanese Ministry of Internal Affairs and Communications, indicating that a review of the capital relationship is difficult in the short term. However, it stated that discussions with Naver will continue.
Meanwhile, Naver has maintained its stance that it will not sell its equity in Line Yahoo in the short term. CEO Choi Soo-young mentioned in a newsletter sent to employees at the end of last year regarding the Line Yahoo issue, "This has been a meaningful opportunity to maintain a mid- to long-term strategy without being swayed by short-term situations and to adapt the collaboration structure with Line Yahoo to local needs."