Line Lacked Sensitivity to Economic Security: Panel

Economy

Tokyo, Oct. 18 (Jiji Press)--Line Corp. failed to give appropriate consideration to economic security by leaving user data accessible to an outsourced Chinese subsidiary, an independent panel of experts said Monday.

The Japanese messaging app operator did not pay enough attention to risks, including the possibility of data being leaked to the Chinese government, and had no system to review the problem later, the panel said in its final investigation report.

The panel was created by Line's parent, Z Holdings Corp. <4689>, after the inappropriate data management problem at Line emerged. It urged the entire group to enhance its system for safe data management.

Line did not inform its users of the access from the outsourced company to some message records. Although some image data and files of the users were stored in South Korea, Line explained to government offices that user data were "confined in Japan," which was not true.

The report criticized Line's attitude as "inappropriate" and said the company had to "be committed to delivering objective facts sincerely."

[Copyright The Jiji Press, Ltd.]

Jiji Press