Naver presses the legal grounds?… Swift passage of the National Security Act

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[People are entering Tokyo Garden Terrace Kioi Tower in Tokyo’s Chiyoda Ward, where Line Yahoo is located on the 9th afternoon. A sign saying ‘Line Yahoo’ is displayed in front of the walking people. (Photo=Yonhap News)]

‘The Japanese government, which has been pressuring changes in Line Yahoo’s ownership, has now legal grounds to pressure Naver. By passing the key security law that designates businesses handling important information appointed by the state, negotiations for Naver’s sale of Line shares are now facing obstacles.

According to the Nihon Keizai Shimbun on the 23rd, the Law on the Protection and Utilization of Important Economic Security Information was passed through the Diet recently, with a quick decision made just a month after its approval by the Lower House.

This bill’s core point is that the government designates private entities handling important information to prevent leaks of classified information or advanced technology abroad.

If important information is leaked, imprisonment of up to 5 years is possible, and what constitutes important information is entirely at the discretion of the Japanese government.

Once this law is enforced, incidents like the personal information leak by Line Yahoo last year could be subject to punishment rather than just administrative guidance.

Especially, the Japanese government can designate Line Yahoo’s information handling personnel, potentially excluding Korean national employees.

While the Japanese government has previously responded to the Line incident through administrative guidance, it is now expected to pressure Naver based on the new law to facilitate the sale of Line shares. However, as concrete enforcement guidelines need to be established, it is expected to take time for full enforcement.

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