Politicians urge gov’t to fight Japan’s push on Naver’s Line

Main opposition party calls government’s handling of dispute a ‘diplomatic disaster’

Korean politicians are criticizing Seoul’s passive response to Tokyo’s apparent pressure on Korean tech giant Naver to sell its stakes in LY Corp., the Tokyo-headquartered operator of mobile messaging app Line.

Figures from both ruling and opposition blocs called the Korean government’s diplomacy “miserable” as it has not given any response while Japan is trying to “extort” technologies of the Korea-developed app, which has approximately 180 million active users in Japan and Southeast Asian nations.

Their criticism follows the Japanese government’s administrative guidance to LY to review its capital relationship with Naver after a massive data leak of user information.

The guidance is believed to be an apparent pressure to lower Naver’s control over LY. SoftBank, which jointly owns LY with Naver, said it is talking with the Korean company about controlling the joint venture.

Lawmakers of the main opposition Democratic Party of Korea (DPK), who serve on the Science, ICT, Broadcasting, and Communications Committee and the Foreign Affairs and Unification Committee, held a press conference, Sunday, calling for a National Assembly-level response to Japan’s attempt to “extort” Line from Naver.

“The Japanese government’s actions are a clear violation of national interests and an anti-market outrage. It is time for the National Assembly to do its job. We demand that relevant standing committees be convened immediately and the Assembly deal with the matter,” Reps. Jo Seoung-lae and Lee Yong-sun said.

“The Yoon Suk Yeol government should no longer turn a blind eye and should respond proactively by upgrading this situation to a major diplomatic issue between the two countries.”

They also said the Korean government should take a strong stance, including summoning the Japanese ambassador to Korea.

Last week, the DPK called the Korean government’s response “a diplomatic disaster,” saying, “How long must we endure the dismal diplomacy that cannot even say a word of protest against Japan’s effort to take Line from Naver?”

Rep. Choo Kyung-ho, the floor leader of the ruling People Power Party, said, also on Sunday, that the party will offer support and engage in dialogue to prevent actions that contradict the national interest and the interests of Korean companies.

“I understand that the government contacted the Japanese authorities, fully conveying Naver’s position, while also seeking clarification on the Japanese authorities’ stance,” Choo told reporters during a press conference at the Assembly in Seoul, when asked about the government’s lackluster response to the dispute.

“We will promptly gather perspectives from both the government and the company,” Choo said.

Last Thursday, former PPP lawmaker Yoo Seong-min also wrote on Facebook, “The Japanese government is coercing divestment of a company from a friendly country. It is a violent measure that significantly deviates from the global standards of capitalist market economies.”

He continued, “This issue requires strong protests by the president and the foreign ministry and protective measures to protect the Korean company’s foreign investment … Our government must respond strongly so that Naver can have negotiating power.”

Fellow PPP lawmaker Yoon Sanghyun also said on the same day that the Korean government should not take a hands-off approach to the matter, referring to Seoul’s foreign ministry’s handling of the LY dispute.

“(The Korean government) should not passively wait for Naver’s decision, but proactively engage in the dispute to protect Korean companies in overseas markets and prevent negative fallouts to the relations between Seoul and Tokyo,” Yoon said.

Minor opposition Rebuilding Korea Party Chairman Cho Kuk wrote on Facebook that he will visit Dokdo, Korea’s easternmost island on which Japan is making a territorial claim, in protest of the Yoon administration’s “submissive diplomacy.”

The party’s lawmaker-elect, Lee Hai-min, said in a press conference on Thursday, “A Korean company grown in Japan is about to be taken by Japan … Which country is Yoon representing?”

As to the controversy, both the foreign and ICT ministries said Friday that the government will proactively respond and communicate with businesses to prevent Korean companies’ overseas projects and investments from receiving unfair and discriminatory treatment.

“The administrative guideline by the Japanese government did not directly mention stake sell-off, but it is widely interpreted as a pressure for it, and we express our regret over this,” Second Vice ICT Minister Kang Do-hyun said in a press briefing.

“We’ll take stern and strong measures if Korean companies face unfair treatment against their will,” he said, adding the government is closely communicating with Naver to respect Naver’s managerial decisions.

Foreign Minister Cho Tae-yul also said during a meeting of consulting groups of the foreign and ICT ministries, “If the convergence between economy, security and technology is the trend of the times, the two ministries should unite for strategic response for national interests.”