Data Governance and Credit Risk Associated with LINE’s Handling of Personal Information

「We will continue working to restore the trust of everyone who uses our services and to ensure that users and other stakeholders can use our services with confidence.」

「As of the end of March 2026, we had completed the separation of systems and private networks from NAVER Corporation and NAVER Cloud Corporation, and had completed the principal measures formulated to prevent recurrence.」

「As of the end of March 2026, we completed the separation of systems and private networks from NAVER Corporation and NAVER Cloud Corporation, as well as the principal measures formulated to prevent recurrence.」

「In addition, with respect to a problem in LINE's album feature in November 2024 in which thumbnail images were not displayed correctly, the company received administrative guidance from the Ministry of Internal Affairs and Communications during fiscal 2024.」

「Although we will work to strengthen governance across our group regarding the proper handling of personal information, ineffective measures or governance enhancements could result in administrative sanctions against our group by the authorities, reputational damage to our group, reduced demand for our group's services, and the need to develop and implement additional measures. Incidents involving data leakage or the risk of such leakage could also affect our group's social reputation and performance.」

「In addition, on 1 October 2023, the company merged with LINE Corporation, its wholly owned subsidiary, and Yahoo Corporation, with the resulting new company, LY Corporation, centered on the company and those entities. At the new company following the merger, the company is establishing and strengthening systems to ensure that data governance at the operating company and across all group companies functions smoothly and appropriately.」

「During the first quarter of the current fiscal year, there were no occurrences of the major risks that management recognizes as potentially having a material impact on the Group's financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in the annual securities report for the previous fiscal year, and no material changes to the section titled "Business and Other Risks" in that report.」

「In response to the recommendations presented in the report, we implemented initiatives to improve data governance across the Group, commissioned an outside law firm to verify the status of those initiatives, and compiled a follow-up report in December 2022.」

「In response to the special committee’s recommendations, we will further promote and strengthen initiatives already under way, appropriately share with each operating company in our Group the knowledge gained through LINE Corporation’s initiatives to strengthen company-wide governance and risk management functions, as well as other examples, and further advance efforts to improve governance across the Group.」

「In relation to this matter, LINE Corporation announced on 17 March 2021 that it had granted an affiliated company in China, which was a contractor, viewing access to some personal information obtained from users. No unauthorized external access or information leakage has been confirmed in this matter. However, because certain aspects of the security controls and explanations provided to users were inadequate, the company considers the matter serious and is taking measures to address it.」