Naver is a Korean IT portal platform company, and Line is the first messenger service that Naver launched in Japan.
1. the whole story of the situation
Line is one of the most popular messenger services in Japan, with about 96 million monthly users in the country.
Line was developed and operated by Naver Japan, a subsidiary of Naver, and now Naver Holdings, which is 50% invested by Japan's Softbank and Naver, is the parent company of Line.
At the end of 2022, there was a large customer information leak on the line.
The incident was caused by hacking the virtual server network of Naver Cloud, Naver's cloud service, and is estimated to have leaked the personal information of about 50 million line users.
In the wake of the incident, the Japanese government has raised issues with Line's security and management system, increasing pressure on Naver.
2. Requirements of the Japanese government
The Japanese government is demanding Naver sell its stake in Line and withdraw it from the Japanese market under the pretext of security concerns.
Despite the fact that these issues are subject to improved security measures and fines, Japan is taking very excessive measures as if it were dealing with companies in hostile countries, which is a big controversy.
3. Naver's position
Naver said it had no plans to sell its stake in Line and was working to resolve Line's security and management system issues.
Naver is making efforts to build a security system using artificial intelligence technology and expand security personnel to strengthen the security of the line.
4. Problems
The Japanese government's demand will worsen relations with Korea.
Line is one of the most popular messenger services in Japan, first launched by Naver, and it has over 200 million users across Asia.
If it sells its stake in Line, Naver may lose its influence in the Japanese market.
The Japanese government's demands can be seen as interference in Naver's management, which could be problematic internationally.
There are also criticisms that Japan's attitude was caused by the current government of Yoon Suk Yeol in Korea's servile diplomacy toward Japan.
South Koreans blame the Yoon Suk Yeol government's cowardly diplomacy with Japan, which is expected to be one of the major reasons for impeachment, along with other wrongdoings by President Yoon Suk Yeol.
5. Conclusion
Japan should stop pressuring private companies for management rights and correct its attitude of treating Korean companies as if they were dealing with hostile companies.
Depending on the result of this problem, the relationship between Korea and Japan may get worse.
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