News South Korean president under pressure following Line-Naver spat

The policy of South Korean President Yoon Suk Yeol aimed at improving relations with Japan is facing challenges due to a conflict involving major tech firms from both nations. Critics from the liberal opposition are accusing Yoon of a feeble reaction to what they perceive as Tokyo's coercion on Naver, which has a stake in LY Corp that operates Yahoo Japan and Line. Naver is also the top search engine in South Korea. A Holdings, a joint venture between Naver and SoftBank Corp., holds a majority share in LY. Japanese regulators have directed LY to lessen its reliance on Naver following incidents of user data leaks linked to security maintenance outsourcing and a cloud service connected to Naver.

Some observers in South Korea interpreted the move as undue political pressure from Tokyo intended to sideline a local champion. On Monday, Cho Kuk, a disgraced former justice minister but rising opposition politician, called Yoon's approach to Japan "humiliating," accusing the president of failing to fulfill his duty to defend a major South Korean company. Since last year when initiating his policy of seeking closer ties with Japan, Yoon has faced criticism from civic groups and opposition parties, both of which tend to be critical of Japan, for not insisting that the country make new shows of contrition for its 1910-1945 colonial occupation of the Korean Peninsula. The opposition has also increased heat on him over other hot-button issues, including recent visits by lawmakers to a set of islands in the Sea of Japan controlled by South Korea but claimed by Japan.

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Shinsuke J. Sugiyama, a professor at Waseda University and a retired diplomat who served as Tokyo's ambassador to the U.S., said that private companies have an essential role in fostering closer relations between the two neighbours. "No matter what happens, we must be engaged with each other, and that doesn't only mean to say that the governments should be engaged," Sugiyama told Nikkei Asia. "The private sector should go further. "That's a fundamental starting point. Sometimes people tend to be emotional and not logical, but business means being logical and getting money for both sides."


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