SEOUL: South Korea will consult with Naver following media reports that the domestic Internet company faced pressure from Japan to divest from a venture. South Korea asserts that its companies should not experience discrimination.
The South Korean foreign ministry responded to a Kyodo news agency report, stating that Japan’s SoftBank Group was discussing purchasing shares of LY Corp from Naver, allegedly under administrative guidance from Japan’s internal affairs and communications ministry due to a data leak last year.
In a statement, the ministry affirmed, “The South Korean government firmly opposes discriminatory measures against our companies. We will ascertain Naver’s stance on the matter and engage with Japan’s side as necessary.”
LY Corp, majority owned by A Holdings—a joint venture of SoftBank and Naver—operates Line, a popular messaging app in Japan and across Asia.
The report raised concerns in South Korea about potential political interference, prompting two incoming lawmakers from the Rebuilding Korea Party to call for “strong action”.
Japan’s internal affairs and communications ministry and SoftBank Group did not immediately respond to Reuters’ requests for comment. — REUTERS
