Naver says it has yet to determine its stance on the Japanese government requesting Line Yahoo(LY) Corporation, which operates the Line chat app and internet portal Yahoo Japan, to reassess its capital relationship with South Korea’s leading web portal. 

Naver CEO Choi Soo-yeon said Friday during a conference call on the company’s earnings for the first quarter that the firm is still reviewing the administrative guidance which was issued by Japan's Ministry of Internal Affairs and Communications earlier on Tuesday.

Choi said an administrative guidance that calls for a reduction in capital control is in itself unprecedented, adding that the company is in close consultations with the science ministry and other related agencies on the matter. 

She said the firm will disclose its position once it reaches a decision.

In the administrative guidance, the Japanese communications ministry requested LY Corporation improve its management, including adjusting its stake holdings structure with Naver, saying that the Tech Giant’s cybersecurity measures were insufficient. 

The ministry further urged LY to decrease its dependence on Naver by handing over its stake to Japan's SoftBank Group. LY is a 50-50 joint venture between Naver and SoftBank.

The move came after LY Corporation announced a string of data leaks resulting from hacking.