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Seoul vows to protect Korean companies from 'unfair treatment' amid Japan's pressure

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Science Minister Lee Jong-ho speaks at a press conference in Sejong, May 8. Yonhap

Science Minister Lee Jong-ho speaks at a press conference in Sejong, May 8. Yonhap

Korea's science minister said Wednesday the government will keep making efforts to protect domestic companies from "unfair treatment" in overseas markets, concerning Japan's pressure on tech giant Naver following last year's data leakage incident.

"Regarding Japan's administrative guidance to LY, we have been in close consultations with Naver to support its decision as much as possible," Science Minister Lee Jong-ho told reporters in a press conference.

"The Ministry of Science and ICT will put a priority on helping our companies' overseas business and investment avoid unfair treatment," Lee said.

But Lee said the government is taking a cautious approach as Naver is involved "in a matter concerning national interests."

Earlier this year, Japan's Ministry of Internal Affairs and Communications issued the administrative guidance to LY, regarding the data leak, urging it to decrease its capital dependence on Naver.

LY, the operator of Line, Japan's top mobile messenger, and internet portal Yahoo Japan, is controlled by A Holdings, a 50-50 joint venture between Naver and Japan's SoftBank Group.

Japan's actions drew criticism in Korea, with many viewing them as an attempt to diminish foreign influence on the widely used online platform in the country.

Line, developed by Naver in 2011, had around 96 million users in Japan, or 78 percent of the country's population, as of last year, according to Line Plus, Naver's affiliate that operates the application in Korea.

Last week, Naver CEO Choi Soo-yeon said her company "has yet to determine its stance on the matter," calling the Japanese move "very exceptional."

"Rather than determining whether to follow the guidance or not, we see the matter as a decision that needs to be made according to our mid-to-long-term business strategy, and we are still pondering the matter," Choi said.

Seoul's foreign ministry has also said it was in talks with Japan based on the position that there should be no discriminatory measures against the Korean company over the matter. (Yonhap)



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