Z Holdings Corporation

ZHD Holds First Special Committee on Global Data Governance

Z Holdings Corporation (hereinafter referred to as "ZHD") established the "Special Committee on Global Data Governance*1", a committee consisting of external experts to verify and evaluate the handling of data from security and governance perspectives. The first meeting was held on March 23 (Tue).

*1Please refer to the following for details on the Special Committee:
Announcement of a Special Committee of External Experts on Global Data Governance

In this first meeting, Takeshi Idezawa, Representative Director, CEO of LINE Corporation (hereinafter referred to as "LINE") explained the current state of LINE's global data governance and future measures. Based on this explanation, the Committee members gave the following proposals:

・Speedy and complete assessment of all services
・Verification of the plan to transfer data to Japan
・Verification of the appropriateness of LINE's previous public explanations
・Verification of contractual relationships with outsourced contractors, the actual status of data handling, and the specific status of supervisions
・Consideration of future governance based on these verifications

Going forward, in addition to further discussions at the Special Committee based on the progress report of the measures*2 by LINE, the Technology Verification Subcommittee will monitor the actual situation on the handling of data of users in Japan by LINE, and conduct an audit from a technical perspective regarding cybersecurity. The Special Committee is scheduled to meet biweekly, and the progress will be announced accordingly.

As the holding company that has newly integrated with LINE, ZHD will implement, manage, and supervise this matter in a responsible manner. At the same time, ZHD intends to request the Special Committee to make recommendations for the establishment of an advanced and optimal governance system for the Z Holdings Group, which consists of Internet companies such as LINE.

In order to fulfill its social responsibility as a digital platform operator, the ZHD Group will continue to sincerely consider the opinions and suggestions of customers and experts, and make continuous improvements to enhance transparency and create an environment where customers can use our services with peace of mind.

*2 LINE announced the following future measures on March 23.
・Implementation of access control to personal information at the development base in China and outside contractors (access to personal information of users in Japan has already been blocked, termination of operations in China on LINE's communication-related functions and services)
・Phased transfer of data to Japan
・Revision of privacy policy for users
・Strengthening of data security governance structure and information protection

Please note that the impact of this matter on the business results of the ZHD Group is minor.

For details, please refer to the press release: Japanese Only