Japan Ministry of Internal Affairs and Communications Administrative Guidance Line Yahoo "3 Executives Voluntarily Return Compensation"

Basic Salary 30% for 3 Months Including CPO Shin Jungho

Line Yahoo announced on the 6th that three executives have voluntarily decided to forfeit their salaries for up to three months in response to administrative guidance received from Japan's Ministry of Internal Affairs and Communications.

According to local media such as the Nihon Keizai Shimbun on the same day, Shin Jung-ho, Chief Product Officer (CPO) and former Naver employee, and Takeshi Idezawa, President, will each forfeit 30% of their base salary for three months, while Chairman Kentaro Kawabe will forfeit his salary for one month.

Earlier, in November last year, Line Yahoo disclosed that there was a possibility that 440,000 pieces of personal information of LINE users, business partners, and employees had been leaked, stating that there was unauthorized access by a third party through its affiliated company, Korean Naver Cloud. Subsequent investigations confirmed the possibility of an additional leakage of about 70,000 pieces of personal information.

In response, the Ministry of Internal Affairs and Communications issued administrative guidance to Line Yahoo the day before, urging measures to prevent recurrence. The ministry pointed out that Line Yahoo excessively depended on Naver, a major shareholder entrusted with system operations, and that cybersecurity measures were insufficient, demanding improvements in the management system including a "review of the capital relationship with Naver."

Line Yahoo is a company established in October last year by Japan Z Holdings, a joint venture between Naver and SoftBank, which merged "LINE" and "Yahoo Japan" under its umbrella.

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