{"id":2204989,"date":"2024-05-06T08:00:41","date_gmt":"2024-05-05T23:00:41","guid":{"rendered":"https:\/\/koreapro.org\/?p=2204989"},"modified":"2024-05-05T19:34:48","modified_gmt":"2024-05-05T10:34:48","slug":"diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/05\/diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake\/","title":{"rendered":"Diplomatic tensions rise as Japan targets Korean tech giant\u2019s chat app stake"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">South Korean lawmakers on Friday <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20240503009251315\"><span style=\"font-weight: 400;\">criticized<\/span><\/a><span style=\"font-weight: 400;\"> Japan\u2019s actions against Naver, the country\u2019s top internet portal operator, as \u201cexcessive\u201d and potentially damaging to improving bilateral relations. The criticism comes after Tokyo <\/span><a href=\"https:\/\/www.soumu.go.jp\/menu_news\/kaiken\/01koho01_02001327.html\"><span style=\"font-weight: 400;\">issued<\/span><\/a><span style=\"font-weight: 400;\"> a non-binding administrative guidance requesting that Line Yahoo Corporation (LY Corp.), the operator of Japan\u2019s widely used Line messenger, reconsider its financial reliance on Naver following a <\/span><a href=\"https:\/\/www.asahi.com\/ajw\/articles\/15068861\"><span style=\"font-weight: 400;\">data leak<\/span><\/a><span style=\"font-weight: 400;\"> involving over 300,000 cases last year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lawmakers from the ruling People Power Party and the main opposition Democratic Party urged Japan to resolve the issue without harming bilateral ties. Naver CEO Choi Soo-yeon <\/span><a href=\"https:\/\/www.yna.co.kr\/view\/AKR20240503051251017?section=search\"><span style=\"font-weight: 400;\">stated<\/span><\/a><span style=\"font-weight: 400;\"> that the Japanese government\u2019s demand was \u201cunusual\u201d and added that the company has not decided on a position but will address the matter from a long-term business perspective.<\/span><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Naver\u2019s stake in Line started in March 2021 when the company and SoftBank, a Japanese multinational investment holding company, <\/span><a href=\"https:\/\/koreajoongangdaily.joins.com\/2021\/03\/01\/business\/tech\/naver-line-z-holdings\/20210301185000337.html\"><span style=\"font-weight: 400;\">established<\/span><\/a><span style=\"font-weight: 400;\"> A Holdings, a joint venture in which each company has a 50% stake. Concurrently, Line Corporation <\/span><a href=\"https:\/\/english.kyodonews.net\/news\/2021\/03\/6805a66d032a-yahoo-japan-operator-line-merge-to-expand-services-globally.html\"><span style=\"font-weight: 400;\">merged<\/span><\/a><span style=\"font-weight: 400;\"> with Yahoo Japan, which Z Holdings, a SoftBank Group subsidiary, had operated. A Holdings owns 64.5% of Z Holdings, which owns 100% of Line and Yahoo Japan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Japan\u2019s request that LY Corp. reconsider its financial reliance on Naver highlights Tokyo\u2019s growing concerns about data security and foreign influence in its tech industry. For Naver, losing its stake in Line would make it challenging to remain competitive in the Japanese market. Last year\u2019s <\/span><a href=\"https:\/\/www.asahi.com\/ajw\/articles\/15068861\"><span style=\"font-weight: 400;\">cyberattack<\/span><\/a><span style=\"font-weight: 400;\">, which led to the data leak, also highlights South Korea\u2019s <\/span><a href=\"https:\/\/www.nknews.org\/pro\/north-korean-hackers-stole-files-from-10-south-korean-weapons-manufacturers\/\"><span style=\"font-weight: 400;\">ongoing vulnerability<\/span><\/a><span style=\"font-weight: 400;\"> to malicious cyber attacks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tokyo\u2019s direct intervention in the sector is part of a global trend of nations making demands on foreign-owned tech companies due to national security concerns. In April, U.S. President Joe Biden signed a law <\/span><a href=\"https:\/\/www.congress.gov\/bill\/118th-congress\/house-bill\/815\/text?itid=lk_inline_enhanced-template\"><span style=\"font-weight: 400;\">banning TikTok<\/span><\/a><span style=\"font-weight: 400;\"> unless its Chinese owner, ByteDance, sells its subsidiary in 270 days.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Japan\u2019s actions against Naver risk being perceived as discriminatory and harmful to South Korean corporate interests, which could harm the improving relationship between Seoul and Tokyo. This marks the latest significant disagreement between the two countries as South Korean President Yoon Suk-yeol and Japanese Prime Minister Fumio Kishida suffer from their respective low approval rates.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/inter-korean-foreign-relations\/\"><span class=\"tag\">Inter-Korean &amp; Foreign Relations<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/technology-cyber\/\"><span class=\"tag\">Technology &amp; Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>South Korean lawmakers on Friday criticized Japan\u2019s actions against Naver, the country\u2019s top internet portal operator, as \u201cexcessive\u201d and potentially damaging to improving bilateral relations. The criticism comes after Tokyo issued a non-binding administrative guidance requesting that Line Yahoo Corporation (LY Corp.), the operator of Japan\u2019s widely used Line messenger, reconsider its financial reliance on [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2204990,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,28,29],"class_list":["post-2204989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-inter-korean-foreign-relations","tag-technology-cyber"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Diplomatic tensions rise as Japan targets Korean tech giant\u2019s chat app stake - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/05\/diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Diplomatic tensions rise as Japan targets Korean tech giant\u2019s chat app stake - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korean lawmakers on Friday criticized Japan\u2019s actions against Naver, the country\u2019s top internet portal operator, as \u201cexcessive\u201d and potentially damaging to improving bilateral relations. The criticism comes after Tokyo issued a non-binding administrative guidance requesting that Line Yahoo Corporation (LY Corp.), the operator of Japan\u2019s widely used Line messenger, reconsider its financial reliance on [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2024\/05\/diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-05T23:00:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-05T10:34:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/koreapro.org\/wp-content\/uploads\/sites\/6\/2024\/05\/Untitled-design.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1870\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2024\/05\/diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2024\/05\/diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"Diplomatic tensions rise as Japan targets Korean tech giant\u2019s chat app stake\",\"datePublished\":\"2024-05-05T23:00:41+00:00\",\"dateModified\":\"2024-05-05T10:34:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/05\/diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake\/\"},\"wordCount\":372,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/05\/diplomatic-tensions-rise-as-japan-targets-korean-tech-giants-chat-app-stake\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/05\/Untitled-design.png\",\"keywords\":[\"Business &amp; 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