Business and credit risk arising from inadequate response to economic security legislation
First written in FY2023. 3 of 6 entries say "Worsened", first in FY2024-Q3. Latest entry: FY2026.
Ly moved to the "Worse" side of this theme in 2024, 5 years after the typical company in this theme (2019).
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Under the Act to Strengthen Cybersecurity Measures and the related legislation enacted in May 2025, known as the Active Cyber Defense Act, specified social infrastructure operators are expected to be required to register assets of specified electronic computers and report cyber incidents, among other obligations.」
In addition to the Economic Security Promotion Act, the Company must now respond to the Active Cyber Defense Act, increasing the risk of management and reporting burdens and response costs as a specified social infrastructure operator. - FY2025ReframedAnnual report
「The Group top risks in the section "Group Top Risks" under "Business and Other Risks" in the securities report for the previous fiscal year have been changed as follows. These risks were newly determined as the Group top risks for fiscal 2025 at the Risk Management Committee meeting in November 2024, based on an assessment of the situation at that time. Business strategy risk Information security risk Geopolitical and economic security risk Regulatory and policy risk」
Economic security risk was consolidated with geopolitical risk and reorganized as "geopolitical and economic security risk" among the top risks for fiscal 2025. - FY2024WorsenedAnnual report
「Under this system, the requirements began to apply on 17 May 2024. If the Company fails to respond appropriately to the reviews conducted by the government under the Economic Security Promotion Act, the authorities may issue administrative measures, including recommendations or orders for corrective action or suspension, against the Company. This could result in a temporary business suspension or delay, additional capital investment, additional measures and costs, and reputational damage to the Company.」
Following the designation as a critical infrastructure operator, the start date for application of the requirements under the Economic Security Promotion Act was specified, making the risks of administrative measures, business suspension and additional costs in the event of an inadequate response more concrete. - FY2024-Q3WorsenedAnnual report
「Under the Act on the Promotion of Ensuring National Security through Integrated Economic Measures (the Economic Security Promotion Act), LINE Yahoo was designated as a specified social infrastructure operator (critical infrastructure operator) on 16 November 2023. If the Company fails to respond appropriately to the reviews conducted by the government under the Economic Security Promotion Act, the authorities may issue administrative measures, including recommendations or orders for corrective action or suspension, against Group companies. This could result in temporary business suspensions or delays, additional capital investment, additional measures and costs, and reputational damage to Group companies.」
Following LINE Yahoo's designation as a critical infrastructure operator, inadequate responses to economic security legislation took concrete form as a risk of administrative measures, business suspensions or delays, additional investment and costs, and reputational damage. - FY2024-Q1RestatedAnnual report
「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.」
The Company reconfirmed that the risk of business and reputational damage arising from inadequate responses to economic security legislation remains unchanged. - FY2023First statedAnnual report
「In October 2022, in anticipation of the start of the system established under the Economic Security Promotion Act, the Group newly established an Economic Security Department and has been collecting information on economic security in Japan and overseas, exchanging views with experts, and identifying and specifying economic security risks.」
The Company disclosed as a new group top risk the potential for administrative measures, business suspensions or delays, additional investment and response costs, and reputational damage if the Group becomes subject to the Economic Security Promotion Act.