Japan’s nationalist move
Decisive leadership needed to safeguard Naver
The presidential office vowed to decisively address any potential inappropriate actions against domestic companies amid a brewing dispute surrounding LY Corp. (Line Yahoo). “We will provide maximum assistance to protect our enterprises from potential improper treatment by foreign governments,” Director of National Policy Sung Tae-yoon said during a press briefing on Monday.
Sung’s remarks came after the main opposition Democratic Party of Korea (DPK) vehemently criticized the Yoon Suk Yeol administration for its perceived passivity in the face of Japan’s recent aggressive move targeting LY Corp. DPK spokesperson Han Min-soo condemned the administration’s failure to address Japan’s attempts to seize control of LY Corp.’s management rights, and called for immediate steps to protect Korea’s sovereignty and national interests.
Such criticism comes amid intensifying tension sparked by Japan’s pressure on LY Corp., the operator of Naver’s messenger app Line, to restructure its financial ties with Naver.
DPK Chairman Rep. Lee Jaemyung’s direct reference to historical grievances underscores the seriousness of the situation. In a Facebook post, Friday, he wrote, “While Ito Hirobumi (the first Japanese resident general of Korea) plundered our national territory, his descendants are pillaging our cyber territory.”
Lee was referring to Takeaki Matsumoto, minister of international affairs and communications, who called on LY Corp. to reconfigure its financial ties with Naver. Lee also criticized the Yoon government’s inaction regarding the matter, urging more decisive steps to cope with Japan’s encroachment on Korea’s national interests.
Lee’s reaction may seem excessive, as it may provoke anti-Japan sentiment rather than offering a constructive solution to the issue at hand. However, the opposition’s response is understandable as it reflects widespread sentiments among the Korean people regarding the recent issue and dissatisfaction with the Yoon government’s perceived lack of assertiveness in addressing the matter.
Following the Japanese government’s move, LY Corp. has been pressuring Naver to give up its management rights. LY Corp. CEO Takeshi Idezawa said, Wednesday, that the company will gradually address its financial ties with Naver and strive for technical independence. As a subsequent measure, LY Corp. removed its chief product officer, Shin Jung-ho, who was the sole Korean board member.
“We are strongly demanding the capital realignment of the parent company,” the CEO said, amid talks between Naver and SoftBank, each holding a 50 percent stake in A Holdings, the holding firm of LY Corp. The Japanese Ministry of Internal Affairs and Communications earlier issued an administrative guideline demanding SoftBank purchase Naver’s stakes in LY Corp. so the Japanese firm can secure management control over LY Corp.
Regarding the rationale behind the demand, the ministry cited a breach of sensitive information that occurred last November. It is understandable for a government to respond proactively to the leak of personal data. However, in this situation, the Japanese government could have addressed the issue by simply asking Naver to strengthen its security measures.
It is inappropriate for the Japanese government to make such drastic demands on a prominent internet portal representing Korea. The lack of similar demands directed at Japanese companies highlights the inappropriate nature of Tokyo’s actions, emphasizing the need for Korea to assert its interests more aggressively.
The more concerning issue is that the Yoon administration has failed to take appropriate action despite the seriousness of the situation, instead attempting to anticipate the intentions of the Japanese side. Science and ICT Minister Lee Jong-ho said, “We have been closely consulting with Naver to understand and respect its position. Problems could arise if the government were to intervene abruptly in this matter.”
Despite the presidential office’s recent efforts to address Japan’s actions, both the office and the Ministry of Foreign Affairs have faced criticism for remaining silent on the matter despite their earlier pledges to support Naver. It is crucial for the government to utilize all available means to protect domestic companies venturing into foreign markets and to uphold national dignity on the global stage.
In this vein, Yoon should attentively listen to former lawmaker Yoo Seong-min, who called on the president to telephone Japanese Prime Minister Fumio Kishida to solicit cooperation in resolving the matter, via a comment on his Facebook account Saturday. What Yoon needs now is decisive leadership paired with proactive diplomacy.