- Japan pressures Naver to divest Line stake after data breach impacting Japanese users.
- Regulators order corporate restructuring, raising speculation of SoftBank takeover.
- Rare foreign intervention in domestic firm operations fuels intrigue.
In an intriguing development, the Japanese government appears to be exerting pressure on South Korea’s Naver to divest its shares in Line’s holding company, A Holdings.
This move follows a data breach that compromised the personal information of Line’s Japanese users.
Big brother calling the shots?
Subsequent to the incident, Japan’s Ministry of Internal Affairs and Communications has issued orders to Line operator LY Corporation, a subsidiary of A Holdings, to implement corporate restructuring measures.
Although the Japanese authorities haven’t explicitly demanded Naver’s stake sale, industry insiders interpret this as a directive for Naver to transfer its ownership to SoftBank Group, the joint venture partner.
When data leaks, stakes get shaky
Compounding the situation, Japan’s Personal Information Protection Commission has requested an investigation into Naver’s role in the data leak.
However, South Korea’s counterpart agency has yet to respond, further fueling speculation about the potential implications for the tech giant.
Intriguingly, Korean experts and insiders find it highly unusual for a foreign government to wield such influence over a domestic company’s operations.
Nevertheless, the South Korean government has remained largely silent on the matter, adding to the intrigue surrounding this high-stakes data breach saga.
To read the original article: https://www.techinasia.com/japan-push-naver-sell-stake-line-report
