Special Advisory Committee on Global Data Governance

About the Special Advisory Committee on Global Data Governance

In March 2021, Z Holdings Corporation (hereinafter "Z Holdings"; renamed to LY Corporation), established the Special Advisory Committee on Data Governance (hereinafter "Special Advisory Committee"). The Special Advisory Committee was held for a total of ten times in which the external experts verified and evaluated the handling of data at the Z Holdings Group including LINE Corporation from security and governance standpoints. In addition, a Technology Verification Subcommittee consisting of external experts in the field of cybersecurity was established. Through a total of 15 meetings, the Subcommittee supported the Special Advisory Committee from a technical perspective. After these verifications and evaluations, the Special Advisory Committee submitted a Final Report to Z Holdings in October 2021, and the entire Group has worked to strengthen and improve its data governance system based on this Final Report.

LY Corporation will succeed the Group-wide data governance initiatives undertaken by Z Holdings and promote the reinforcement of the data governance system. At the same time, in order to fulfill its social responsibility as a digital platform operator, LY Corporation will also continue to sincerely consider the opinions and suggestions of users and experts, and create an environment that enhances transparency and enables users to use the services with peace of mind.

Verifications and evaluations made by the Special Advisory Committee

  • Verification on the handling of personal information of users in Japan from the perspectives of security and governance

  • Recommendations on future measures based on the above verification results, taking into account changes in the environment such as laws and regulations in each country that should considered as a digital platform operator, in addition to privacy, security and governance perspectives

Verifications and evaluations made by the Technology Verification Subcommittee

  • Based on the instructions by the Special Advisory Committee, ascertainment of the actual status of LINE Corporation's handling of data of users in Japan, and audit from a technical perspective regarding cybersecurity

Members of the Special Committee (without honorifics)

  • Chairperson: George Shishido (Professor, Graduate Schools for Law and Politics, The University of Tokyo)
  • Member: Hiroshi Ohashi (Dean, Graduate School of Public Policy, The University of Tokyo)
  • Member: Toshifumi Kokubun (Director, Center for Rule-making Strategies, Tama University)
  • Member: Ryoji Mori (Attorney-at-Law, Eichi Law Offices)
  • Member: Yuko Kawai (Partner, Attorney-at-Law, Nishimura & Asahi)
  • Member: Hiroshi Kawaguchi (Representative Director, Kawaguchi Sekkei, Inc.)
  • Member: Miki Nagata (Information Communication Consumer Network)

Members of the Technology Verification Subcommittee (without honorifics)

  • Chairperson: Hiroshi Kawaguchi (President, Kawaguchi Sekkei, Inc.)
  • Member: Takayoshi Hojo (Counsel, Attorney-at-Law, Nishimura & Asahi)
  • Member: Sen Ueno (Representative Director, Tricorder Co. Ltd.)

Proposals from the Special Advisory Committee, etc.

Final report

The main items covered in the Final Report are as follows:

  • Overview etc. of the Special Advisory Committee
  • Status of cross-border data access and data storage related to LINE app
  • Results of the verification on LINE Corporation's governance, and LINE Corporation's improvement measures
  • Status of Group companies that handle the important data of LINE Corporation
  • Status of data governance in LINE Corporation, and recommendations for improvement
  • Status of governance in Z Holdings Corporation, and recommendations for improvement
    and others.

To view the Final Report by the Special Advisory Committee, please click the following links

For the outline of the Primary Report, please click here.
For the outline of the Secondary Report, please click here.
For the press release on the Final Report, please click here.

Follow-up Report

Z Holdings has led initiatives to strengthen and improve its data governance system of the entire Group including LINE Corporation and Yahoo Japan Corporation, based on the recommendations in the Final Report from the Special Advisory Committee, received in October 2021. Z Holdings engaged a law firm, Nagashima Ohno & Tsunematsu (hereinafter "NO&T"), to review and evaluate these efforts and received a follow-up report from the firm in December 2022.

This follow-up report is the result of the review and evaluation by NO&T, an external expert, of the appropriateness of the data governance enhancements and the initiatives to fulfill accountability towards users implemented by Z Holdings and its Group companies, including LINE Corporation, based on the Special Advisory Committee's Final Report.

Main items covered in the follow-up report are as follows:

  • Overview of the verification
  • Development of systems related to data governance
  • Individual approaches to data governance
  • Psychological safety/communication
  • Other initiatives
  • Towards the future

Results of the verification by NO&T (overview)

As a result of the verification, we have confirmed that the Z Holdings Group is implementing and realizing various measures based on the recommendations of the Special Committee, to strengthen data governance throughout the Z Holdings Group.
In the future, we expect Z Holdings will strive to operate a governance process that takes into account mechanisms to ensure the effectiveness of monitoring and corrective actions. At the same time, we expect Z Holdings to establish and operate highly flexible governance that can respond to rapid changes in the business and regulatory environment, while being conscious of applying the governance to the entire Group.

Please access the following link for the follow-up report by NO&T (Japanese only)

Record of Special Advisory Committee and Technology Verification Subcommittee held

Special Advisory Committee

Technology Verification Subcommittee

  • 1st Technology Verification Subcommittee
    (Held April 5, 2021)

    Outline (PDF)

  • 2nd Technology Verification Subcommittee
    (Held April 7, 2021)

    Outline (PDF)

  • 3rd Technology Verification Subcommittee
    (Held April 14, 2021)

    Outline (PDF)

  • 4th Technology Verification Subcommittee
    (Held April 23, 2021)

    Outline (PDF)

  • 5th Technology Verification Subcommittee
    (Held April 28, 2021)

    Outline (PDF)

  • 6th Technology Verification Subcommittee
    (Held May 12, 2021)

    Outline(PDF)

  • 7th Technology Verification Subcommittee
    (Held May 17, 2021)

    Outline(PDF)

  • 8th Technology Verification Subcommittee
    (Held May 28, 2021)

    Outline(PDF)

  • 9th Technology Verification Subcommittee
    (Held June 4, 2021)

    Outline(PDF)

  • 10th Technology Verification Subcommittee
    (Held June 16, 2021)

    Outline(PDF)

  • 11th Technology Verification Subcommittee
    (Held June 30, 2021)

    Outline(PDF)

  • 12th Technology Verification Subcommittee
    (Held July 14, 2021)

    Outline(PDF)

  • 13th Technology Verification Subcommittee
    (Held July 28, 2021)

    Outline(PDF)

  • 14th Technology Verification Subcommittee
    (Held August 16, 2021)

    Outline(PDF)

  • 15th Technology Verification Subcommittee
    (Held September 10, 2021)

    Outline(PDF)

Related press releases and notices

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