(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] Japan's largest IT company, Line Yahoo, has reaffirmed its stance on reviewing its capital relationship with Naver.

On the 1st, Line Yahoo submitted a report related to administrative guidance from the Ministry of Internal Affairs and Communications of Japan. The report serves as a response to the Japanese government's directive to "review the equity relationship with Naver." The company stated, "We have requested our parent company, A Holdings, to review the capital relationship with its shareholders, SoftBank and Naver." The company added, "However, both parties recognize and share the understanding that short-term capital movement is difficult at the moment."

Line Yahoo further emphasized, "Both companies are responding cooperatively, and Line Yahoo will continue to make efforts to advance discussions." This reiterates their existing position that while short-term capital movement is challenging, they remain committed to pursuing the review of their capital relationship.

In 2019, Naver and SoftBank, which operates Yahoo Japan, agreed to merge Line and Yahoo Japan, establishing A Holdings in 2021. Line Yahoo, which operates the messaging service 'Line' and the search service 'Yahoo Japan,' is 64.4% owned by A Holdings. Naver and SoftBank each hold 50% of A Holdings' shares. Even transferring a single share of A Holdings owned by Naver to SoftBank would result in the loss of management control for Naver.

 

 

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