Tokyo presses Naver further over Line data breach follow-up

Japan's Minister of Internal Affairs and Communications requested that Line Yahoo produce a plan that involves distancing itself from Naver.

Naver's headquarters in Seongnam, Gyeonggi [NEWS1]

Korean portal giant Naver was again pressed by the Japanese government to reduce its influence over the operator of popular messaging app Line.

Line Yahoo (LY), which operates both Line and Yahoo Japan, announced in an electronic disclosure on Tuesday that Japan’s Ministry of Internal Affairs and Communications requested that the operator file additional reports on its preemptive measures following a massive data breach in October. The incident resulted in the leakage of some 510,000 items of personal information about users, business partners, employees and other personnel through its subcontractor, Naver Cloud.

Naver and Softbank Group formed a 50-50 venture known as A Holdings to secure a majority 64.4 percent stake in LY. The messaging service has some 96 million users in Japan.

LY filed a report containing a set of measures to strengthen cybersecurity and dial down its ties with Naver and Naver Cloud earlier this month, but was again pressed by the ministry to review the matter and come up with specific solutions by July 1.

Administrative guidance from the ministry included “accelerated discussions on an essential review of security governance involving the entire group, including the parent company.”

Japan’s Internal Minister Matsumoto Takeaki also requested that LY “urgently” review its capital relationship with Naver, according to Japanese daily The Yomiuri Shimbun.

When reached for comment, a Naver spokesperson merely stated that the company is working with LY “to reinforce cybersecurity infrastructure” and added that its capital ties will be discussed with A Holdings.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]