IT·Science
Entered 2024.05.10 15:51 Modified 2024.05.10 15:57
The Ministry of Science and ICT expresses ‘regret’ to the Japanese government
“Administrative guidance is seen as pressure to sell shares.”
Emphasis on ‘hard line response’ to damage to our companies
Kang Do-hyun, Second Vice Minister of Science and ICT, briefed on current issues relating to the negotiations between Naver and Softbank at Line Yahoo, the operator of the ‘Line’ messenger app, and the Japanese government’s request to re-examine its relationship capital. with Yahoo Line in the Seoul Government Complex briefing room on the afternoon of the 10th I make a presentation. Photo = Yonhap News Naver made its first public statement regarding the Line Yahoo incident. This is the first time the company has acknowledged the possibility of selling its shares to Softbank, saying, “We are open to all possibilities and are negotiating in good faith with Softbank.” The government also kept up with Naver, saying, “We will respond strongly and strongly to discriminatory measures against our companies.”
Kang Do-hyun, Second Vice Minister of Science and ICT, said in a briefing on the 10th, “Our government has confirmed that there is no expression requiring the sale of shares in the administrative guidelines, but we express regret that it be seen as pressure on our companies to sell shares.” “Our firm position is to ensure that our companies, including Naver, do not suffer any disadvantages in relation to foreign business or foreign investment,” he emphasized. The Ministry of Science and ICT announced that it met with the Japanese Ministry of Internal Affairs and Communications through the Korean Embassy in Japan on the 26th of last month to determine the facts regarding the administrative guidelines provided twice against Line Yahoo. On the 29th of the same month, we had a meeting with Naver and the company’s official position was confirmed.
Naver also issued a statement shortly before the Ministry of Science and ICT briefing, explaining, “We are opening up all possibilities, including selling shares, and are sincerely negotiating with Softbank to produce the best results for the company.”
Japan’s Ministry of Internal Affairs and Communications previously issued administrative guidelines to re-examine capital ties on two occasions in relation to the leak of Yahoo’s Line personal information. It is reported that the administrative guidance document of the Ministry of Internal Affairs and Communications contains information that no measures were taken to prevent the leakage of personal information due to the hierarchical relationship between Naver and Line Yahoo. For this reason, the section entitled ‘Re-examination of capital relations’ was interpreted as meaning to reduce Naver’s influence in A Holdings, the parent company of Line Yahoo, in which Naver and Softbank each hold a half share, and to increase shareholdings Softbank.
Japan’s Minister of Internal Affairs and Communications, Takeaki Matsumoto, tried to evolve the situation by saying in a press conference after the Cabinet meeting this morning, “(Administrative guidelines) were not made from the point of view of management rights.” It is explained that this is “a call for a faster fundamental re-examination of relationships subject to a significant degree of capital control and general security governance of the group.”
The equity talks between the two companies are aimed to be completed by July 1, the deadline for responding to the second administrative guidelines from Japan’s Ministry of Internal Affairs and Communications. Only then can a specific plan for administrative guidance be presented again. However, it is not clear whether the negotiations can be concluded quickly. SoftBank CEO Junichi Miyakawa said in the financial statements briefing the day before, “Our goal is to conclude negotiations by early July,” but “it may take a long time.”
Regarding the deadline for responding to administrative guidelines, Vice Minister Kang said, “We have not yet received a request for postponement or various details from Naver,” and added, “Naver has not officially spoken to the government again about the need for it. ” I answered.
Currently, several options are being discussed in terms of equity negotiations. CEO Miyakawa also said, “It is possible to increase Line Yahoo’s capital (to adjust its shares),” and added, “During this process, a deal using SoftBank stocks may be possible.” However, it seems that the direction of lowering Naver’s share has reached a certain level. Takeshi Idezawa, CEO of Line Yahoo, explained at the financial statement briefing, “The details are not something that Line Yahoo can control, but the main premise is that Softbank will change to take the largest share.”
Naver CEO Choi Soo-yeon said in a conference call announcing the first quarter of this year’s earnings on the 3rd, “The administrative guidance that calls for reducing capital control is very unusual itself,” but added, “We will define as a matter to be decided on the basis of medium to long term business strategy and conduct an internal review “There is,” he said.
Our government intends to take joint action if necessary. Vice Minister Kang said, “We will thoroughly share the content with the Ministry of Foreign Affairs and the Ministry of Trade, Industry and Energy, and we will respond jointly if there are issues that require a response at the level the government.”
Kim Dae-young, Hankyung.com reporter kdy@hankyung.com
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