Title: Ownership Dispute Threatens Japanese-South Korean Cooperation
In 2019, a joint venture between top Japanese and South Korean companies was seen as a symbol of cooperation amid strained diplomatic relations. However, five years later, the ownership of the venture, which operates the popular messaging app Line, has become a point of contention that could potentially impact ties between the two countries.
Japan and South Korea have a sensitive history, marked by Japan’s colonization of Korea and ongoing territorial disputes. The joint venture between Naver and SoftBank Group was established during a period of heightened tensions between the two nations, with hopes of fostering better relations.
While relations between Japan and South Korea have improved in recent years, cracks have started to appear in the Naver-SoftBank venture. A security breach at Line’s operator, LY Corporation, led to Japan issuing a directive that was interpreted as a call for Naver to sell down its stake in the joint venture.
The move has sparked controversy in South Korea, with some viewing it as an attempt by Japan to undermine Naver, one of South Korea’s largest companies. The situation has also drawn criticism of South Korean President Yoon Suk Yeol for his handling of relations with Japan.
Both countries are now working to address the dispute and prevent it from escalating further. SoftBank and Naver are in discussions to revise the ownership structure of Line’s operator, while leaders on both sides have expressed a commitment to maintaining diplomatic relations.
The outcome of the dispute over Line’s ownership could have broader implications for Japanese-Korean relations. As both countries navigate the complexities of their shared history, the resolution of this issue will be closely watched as a test of their ability to cooperate and move forward.
In a time of recovering relations, the handling of this dispute will be crucial in determining the future trajectory of Japanese-South Korean cooperation.
