Japanese government pressured Naver to divest from LY Corporation (Line) following 2023 data breach
Apr 1, 2024In March-April 2024 Japan's Ministry of Internal Affairs and Communications issued an administrative guidance to LY Corporation (the Naver/SoftBank joint parent of Line) demanding it review and 'reconsider' Naver's involvement, following a 2023 data breach that exposed approximately 519,000 records. Critics including the Korean government characterised the move as a Japanese government attempt to engineer Naver's exit from Line, the dominant messaging platform in Japan. Naver eventually committed to reducing its 50% stake in LY Corporation under sustained pressure.