Naver: Under Pressure from the Japanese Government To Sell Its Stake in LINE

• On 8 May, it was mentioned in numerous local media that Naver is under pressure from the Japanese government to sell its stake in LINE.

• One of the reasons behind Japanese government's efforts to force Naver to sell its stake in LINE is due a major data breach incident in November 2023.

• Based on our current understanding of this situation, the most likely scenario is for Naver to sell about 20-30% stake in A Holdings (the controlling shareholder of LINE) to SoftBank.