In 2019, a joint venture was established between top Japanese company SoftBank Group and South Korean company Naver to jointly own the operator of Line, a popular messaging app developed in South Korea. The venture was seen as a symbol of cooperation amid historically strained relations between Japan and South Korea. Tensions between the two countries have arisen due to historical issues stemming from Japan’s colonization of Korea and territorial disputes. Diplomats and experts fear that the ownership dispute of the Naver-SoftBank venture could escalate and impact broader defense and diplomacy efforts in the region.
The messaging platform Line, introduced in Japan in 2011, became immensely popular due to its innovative features like expressive stickers. The joint venture between SoftBank and Naver, dubbed the “Son-Lee alliance,” was established at a time when Japanese-South Korean relations were at a low point. However, relations between the two countries have since improved significantly, with leaders taking steps to address historical issues and enhance cooperation in areas like defense and intelligence-sharing to address regional challenges.
The ownership dispute over Line arose when Line’s operator, LY Corporation, reported unauthorized access to its systems via Naver’s cloud storage. Japan’s communications ministry issued a statement that was perceived as a directive for Naver to reduce its stake in the joint venture. This move raised concerns in South Korea, with some viewing it as an attempt by Japan to exert political pressure and undermine Naver, a major South Korean company. Opposition parties in South Korea have criticized President Yoon for being too conciliatory towards Japan, with Naver being seen as a victim of his policies.
To prevent the line ownership dispute from escalating and impacting diplomatic relations, leaders on both sides have expressed their commitment to resolving the issue. SoftBank and Naver are engaged in discussions to revise the ownership structure of Line’s operator, aiming to find a mutually acceptable resolution. South Korea’s government has emphasized the need for fair treatment of Korean companies abroad and is working to ensure that Line’s operator can implement measures to strengthen security governance.
The dispute over Line’s ownership highlights the delicate nature of Japanese-Korean relations and the potential impact of seemingly minor incidents on diplomatic ties. Past incidents have led to prolonged conflicts between the two countries, emphasizing the importance of handling the Line ownership issue with sensitivity and cooperation. Both parties are keen to avoid a further deterioration of relations and are working towards reconciling their differences and building a stronger foundation for future cooperation.
Moving forward, the actions taken by Japan in response to the Line ownership dispute will likely influence the trajectory of Japanese-Korean relations. President Yoon of South Korea has indicated that the ball is in Japan’s court in terms of responding to efforts to strengthen relations. Both countries are aware of the challenges and fissures in their relationship, and the resolution of the Line dispute could pave the way for increased cooperation and trust between Japan and South Korea.
