Science Ministry expresses remorse for Japan’s pressure on Naver

Kang Do-hyun, the second vice minister of science and ICT, spoke during a press briefing at the Government Complex Seoul on Friday. The Science Ministry expressed regret over the Japanese government’s pressure on Naver to shed its ownership stakes in the popular messaging app Line, hinting at “strong and stern” measures if necessary.

During the briefing in Seoul, Second Vice Science Minister Kang Do-hyun told reporters that the Seoul government’s firm position is that Korean companies, including Naver, should not be subjected to any unreasonable measures related to overseas business and overseas investment. If Naver decides to maintain its stake and business in the Tokyo-based LY Corp., the operator of the messaging app Line, the Science Ministry said it would support appropriate measures to strengthen information security.

Japan’s SoftBank CEO Junichi Miyakawa confirmed that the company has been in talks with Naver over its capital relationship in LY Corp., which is majority-owned by A Holdings, a 50-50 joint venture between the two firms. Kang noted that the composition of the board of directors of LY Corp. has SoftBank’s control over the company’s management rights since 2019.

Before the Science Ministry’s briefing, Naver declared its first official stance on the possible stake sale, stating that it is “open to all possibilities” and that discussions are underway with SoftBank. With a firm position that there should be no discriminatory measures against Korean companies, the Seoul government met with the Japanese Ministry of Internal Affairs and Communications to confirm the facts regarding the administrative guidance last month. They have also since confirmed the exact position of the Japanese government through diplomatic channels.