Messaging app Line's successful IPO debut

Line, a Japanese subsidiary of Korea’s IT powerhouse Naver, has been listed simultaneously in the U.S. and Japan, seeing its share price surge at market close on the first trading day. Line's global IPO debut has sent glimmers of hope to Korean IT companies seeking to advance into overseas markets. The company’s stock closed at 4,345 yen (41.06 U.S. dollars), an increase of 32 percent from the offering price in the Tokyo stock market on Friday, and at 41.58 US dollars, an increase of 27 percent in New York on Thursday local time. Line is the first case in which a Korean company nurtured its overseas subsidiary and had it successfully listed on two global stock markets.

Naver had faced crisis due to inherent shortcomings of its first mobile messenger Naver Talk and the rise of the latecomer rival Kakao Talk. Lee Hae-jin, chairman of Naver’s board, paid attention to foreign markets, and developed Line catering to Japanese users on the basis of Naver Talk in 2011. Line has become a major mobile messenger in five years with some 200 million users in more than 200 countries worldwide. Line has become "people’s messenger" in Japan, Thailand and Taiwan where it ranks first in market share. Lee said "the sense of desperateness to survive and dedication of its staff" was key to Line’s success. The fact Line interlinked various services such as comics, delivery and characters through localization catering to different countries is something that other IT companies seeking to make inroads into foreign markets must learn from Line.

Line’s chief global officer Shin Joong-ho received 10.26 million shares as his stock options, which is double that for Lee, and has become a stock millionaire with his shares worth 320 billion won (282 million dollars) in terms of the offering price. Lee decided to offer bigger compensation than himself to CGO Shin, given contributions to Line’s success in Japan. Naver’s compensation system will be a stimulus that prompts young talents armed with creativity and technological expertise to display their skills and talent freely without reservation.

Lee says that he feels anxious every single day because users can migrate instantly in the world of Internet, where there is no national border and time restrictions. He adds his company significantly lacks funds and technology to be able to successfully compete with giants such as Facebook of the U.S. and Tencent of China, with nearly 2 billion users each. However, he said competition should be conducted not in the narrow Korean market but in the global market, and hence, his company will invest 1.5 trillion won (1.32 billion dollars) in gains from the IPO in technology development, and take on challenge in the U.S. and European markets. "Failure to innovate equals demise" is Lee’s motto.