Naver's 'LINE' Operating and Security Control Transfer Effectively to Japan

It has been confirmed that the operational and security control of the messenger platform 'LINE', developed by Naver, has effectively and completely transferred to Japan.

Although pressure from the Japanese government regarding the shareholding structure has temporarily ceased, discussions are expected to continue in the future, suggesting that LINE's 'de-Koreanization' will ultimately be realized in the medium to long term.

On the 2nd, LINE Yahoo (LY, formerly LINE) submitted a 15-page report to the Japanese Ministry of Internal Affairs and Communications last month. The report states that all system, authentication, and network ties with Naver and Naver Cloud have been fully cut off, and that the security and outsourcing operation system has been reorganized under Japanese leadership.

As of the end of March, LINE Yahoo has severed most of its technical ties with Naver, and the comprehensive separation work, including domestic and foreign subsidiaries, will be completed by March of next year.

Shareholding structure reorganization is temporarily halted… LINE Yahoo has cut off most technical ties with Naver

The report also outlines a plan to gradually terminate system ties with Naver and its related subsidiaries by March 2026. This implies an end to collaboration with the Korean subsidiary 'LINE Plus', which has been responsible for practical development, conflicting with LINE Plus's recent insistence that "there will be no separation."

The security system has also been completely transitioned to a Japan-centric model. According to the report, the Security Operations Center (SOC) has been entirely separated from Naver Cloud and has established a 24-hour system in collaboration with Japanese companies.

Key infrastructure such as authentication systems, data centers, and account management systems (AD) will all be operated independently within Japan. The report frequently uses phrases like "blocking unnecessary communication" and "complete separation," emphasizing the technological disconnection from Naver.

In terms of shareholding structure, Naver remains the joint largest shareholder of LINE Yahoo. Naver and SoftBank hold a 50% share each through their joint venture, A Holdings, which owns 64.5% of LINE Yahoo.

The shareholding structure reorganization could be resumed at any time

The Japanese government's request for a review of the capital relationship, which has been ongoing since last year, has not been formally halted. The report states, "Although both sides have engaged in discussions over the past year, it has been agreed that a short-term share shift is difficult," while also indicating a commitment to continuous efforts to advance future discussions based on the current progress.

Ultimately, this implies that discussions on share adjustments can be resumed at any time. There are already analyses in Japan indicating that LINE's identity is fully transitioning from a 'Korean messenger' to a 'Japanese platform.'

Image source: News1, reference photos for understanding the article / Photo=Insight