S. Korea in close talks with Naver over Japan's demand to divest stake in Line messenger: gov't

By Kim Seung-yeon

SEOUL, April 30 (Yonhap) -- South Korea is in close consultations with Naver Corp. after media reports that Japan effectively pressured the South Korean tech giant to sell its stake in its popular mobile messenger app, officials said Tuesday.

The Japanese government demanded LY Corp., the operator of Japan's popular messenger app Line, to sell its stake to Japan's SoftBank Group, citing the recent data leak of personal information, according to Japanese media reports.

A Holdings -- a 50:50 joint venture between Naver and SoftBank -- holds a 65 percent stake in LY Corp.

"We are in close consultations with Naver, and we are cooperating as we fully respect Naver's request," South Korea's foreign ministry said in a message to reporters.

The ministry stressed that the government intends to continue communications with Japan based on the position that there should be no discriminatory measures against the South Korean company.

Earlier this week, Japan's Kyodo news agency reported that Japan's Ministry of Internal Affairs and Communications issued the administrative guidance to LY Corp. regarding the data leak, including handing over its stake to SoftBank.

Japan's move prompted criticism in South Korea that it is aimed at reducing foreign influence in the online platform most widely used in the country.

The Japanese government apparently cited the leakage of over 300,000 cases of Line users' personal data last year.

On Monday, South Korea's science ministry said it plans to provide necessary assistance to Naver, adding that Tokyo's administrative measures have little to do with the bilateral relations.

Diplomatic sources said South Korea has delivered its position to Japan through the embassy channel.

elly@yna.co.kr
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