Line Operator to Disconnect Computer System from Naver

Jiji Press

11:01 JST, April 2, 2024

Tokyo (Jiji Press)—LY Corp., the operator of the Line messaging app, said Monday that it will complete the separation of its computer system from the network of South Korean technology company Naver Corp. in December 2026.

LY reported the plan to the communications ministry, which last month asked the company to review its ties with Naver to prevent a repeat of user data breaches that occurred in autumn last year.

LY also said that it plans to end or scale down its cooperation with Naver on computer systems for various services.

The Japanese company outsources the management of information technology infrastructure to Naver, which holds 50 pct of the parent of LY, which also operates the Yahoo! Japan internet portal. The predecessor of Line Corp. before its merger with Yahoo Japan Corp. was a subsidiary of Naver.

In its report to the ministry, LY said it has asked relevant companies to review its capital ties. LY also said it has started discussions on reviewing its management system in order to properly oversee Naver.

The data breaches were triggered by a malware infection of a personal computer of a subcontractor of Naver, according to LY. As Naver’s system was able to access Line’s old system, LY’s was hit by unauthorized access, leading to breaches of some 520,000 records of personal data.