Line Yahoo(LY), the operator of the Line messenger app, is accelerating its separation from Naver following the Japanese government's directive request to reexamine its capital ties with the South Korean tech giant due to a massive data leak last year.
During a general shareholders' meeting held in Tokyo on Tuesday, Line Yahoo CEO Takeshi Idezawa announced the company is pushing to complete the separation between Naver Cloud and its employee system and authentication base within the 2024 fiscal year.
He added that the company was originally scheduled to complete the system separation in 2026, but they are now devising a plan to expedite this process.
Idezawa further explained that LY Corp. will end its consignment relationship with Naver in nearly all of its local services.
The move comes as Japan's Ministry of Internal Affairs and Communications issued an administrative guidance to LY Corp. earlier this year, urging the firm to reduce its capital ties with Naver.