Nike Tariff Refund Lawsuit Sparks Consumer Backlash Over Price Increases 
OCBC Q1 Profit Rises 5% on Strong Wealth Management and Non-Interest Income 
Continental AG Shares Jump After Q1 Profit Beats Expectations 
Dell Stock Hits Record High After Trump Endorsement, AI Server Demand Fuels Rally 
Orsted Q1 EBITDA Beats Expectations Despite U.S. Impairments 
CoreWeave Q1 2026 Revenue Surges as AI Infrastructure Demand Grows 
Hantavirus Cruise Ship Outbreak Triggers Global Health Alert 
Meta Raises 2026 Capex Outlook Amid AI Spending Surge, Shares Drop After Earnings 
Shell Q1 Profit Surges to Two-Year High as Dividend Rises Despite War-Driven Debt Pressure 
Infineon Raises 2026 Outlook as AI Data Center Chip Demand Surges 
Japan Tech Stocks Surge as AI Optimism Lifts SoftBank, Chipmakers 
BMW Keeps 2026 Outlook Despite 25% Profit Drop Amid Tariff Pressure 
BHP Attracts AI-Focused Investors as Copper Demand Surges 
AWS Data Center Overheating Disrupts Cloud Services in Northern Virginia 
Sony Forecasts Lower 2027 Profit Despite Strong Music and Sensor Growth 
Supermicro Forecasts Strong Q4 Revenue Growth as AI Server Demand Surges 
In response to Japanese regulatory pressure, South Korea has affirmed its commitment to defend its businesses, particularly Naver, as tensions over Line's operational independence intensify.
Growing Tensions Over Tech Partnerships
AP News reports that South Korea promised on Friday to protect its companies that do business in other countries after Japanese regulators told LY Corp., the company behind the famous chat app Line, to depend less on Naver, its Korean partner in the venture.
The conflict stems from Naver's 50% ownership in LY, a joint venture with SoftBank of Japan. This ownership was scrutinized following a significant security breach at Naver's cloud computing servers last year. The leak of over 300,000 records, including user data for Line, prompted the Japanese government to direct LY to strengthen its administration and reduce its dependence on Naver.
Some Korean politicians say Japan is pressuring Naver to cut its stake in LY, which means President Yoon Suk Yeol's government must be strict with Tokyo.
Seoul's Response to Japanese Directives
On Friday, a senior official from the Korean Ministry of Science and Technology talked to reporters after Naver said it was talking with SoftBank about "all possibilities," including selling its shares in LY Corp.
Takeshi Idezawa, president of LY, informed reporters in Tokyo on Wednesday that shares in the app operator were being discussed between Naver and SoftBank, with the understanding that SoftBank would acquire a majority position.
The second vice minister of technology for South Korea, Kang Dohyun, informed reporters in Seoul that the Korean government had verified that the directives given to LY by the Japanese Ministry of Internal Affairs and Communications do not directly demand that Naver sell its company shares.
Kang stated that Naver's decision regarding its ownership of LY would have the government's backing. He said the technology ministry would assist it in strengthening its cybersecurity if it chooses to maintain its involvement in the joint venture.
Strategic Decisions Ahead for Naver and LY
In reaction to Japan's guidelines, LY Corp is also ending its outsourcing to Naver, according to Reuters. SoftBank made this announcement at a presentation.
The government of South Korea declared last month that it is in consultation with Naver and that Korean enterprises should not face any discriminatory treatment. Trade conflicts between Japan and South Korea have resulted from historical animosity between 2019 and last year; however, relations are improving under the present administration.
Photo: Adem AY/Unsplash
