The South Korean government has pledged resolute action in response to any unfair measures that could potentially harm South Korean companies involved in the “LY Corporation incident,” according to statements from the presidential office on May 13. Sung Tae-yoon, Director of National Policy at the presidential office, emphasized the government’s commitment to supporting South Korean companies in making autonomous decisions without facing unjust treatment or adverse conditions abroad.
Key discussions between the government and Naver, a major South Korean company implicated in the incident, began promptly after the hacking incident at Naver Cloud was reported in November 2023. Sung highlighted the government’s proactive stance, stating, “The government plans to support our companies to the fullest so they can make autonomous decisions without facing any unreasonable disposal or adverse conditions abroad.”
LY Corp. has reportedly exerted pressure on Naver to divest its shares following the hacking incident at Naver Cloud and administrative guidance from the Japanese government. The South Korean government has engaged in close consultations with Naver to assess the situation and has verified the stance of the Japanese government through diplomatic channels. Sung elaborated on these efforts, noting, “The Korean Embassy in Japan met with officials from Japan’s Ministry of Internal Affairs and Communications on April 26 to verify the facts of the administrative guidance. On April 29, we held a meeting with Naver to share Japan’s confirmed stance.”
Sung emphasized that if Naver opts to retain its shares and business involvement with LY Corp., the government will implement appropriate measures to enhance information security and offer maximum support in this regard. He also urged bipartisan cooperation from the political sphere, cautioning against framing the situation as anti-Japanese, which could undermine national interests and fail to protect South Korean companies.
A senior official from the presidential office stressed the importance of Naver providing a transparent and specific stance on the issue of share selling, suggesting that government assistance would be most effective under such circumstances. While the decision to sell shares ultimately rests with Naver, the government has signaled robust support if Naver chooses to maintain its stake. The official underscored the strategic advantage of fostering positive relations between South Korea and Japan, highlighting that premature anti-Japanese sentiments could inadvertently strengthen pro-Japanese sentiments.
In summary, the South Korean government’s stance on the “LY Corporation incident” reflects a commitment to safeguarding the interests of South Korean companies and promoting constructive engagement with Japan. By offering support to Naver and advocating for bipartisan cooperation, the government aims to navigate the situation effectively while maintaining diplomatic relations and protecting national interests.
