LINE, Mizuho announce additional investment to LINE Bank

By Edil Corneille

LINE Corporation (LINE) and Mizuho Financial Group announced that their respective subsidiaries, LINE Financial and Mizuho Bank, have jointly agreed to make an additional investment and a change to the management structure of LINE Bank Preparatory Company.

The subsidiaries are taking these necessary steps as they proceed with preparations to establish a user-friendly ‘smartphone bank’ connected to the corporation’s app, with the aim of establishing a new bank in Japan within the fiscal year 2022, subject to approval by relevant authorities.

Established in May 2019, LINE Bank Preparatory Company strives to provide financial services via smartphones to meet the needs of users. The requirement for such services has grown with the wider use of cashless payments since the spread of COVID-19 and the acceleration of digital transformation.

In order to further accelerate system development prior to the launching of the service, the subsidiaries will make an additional JPY 12 billion investment in LINE Bank Preparatory Company, increasing its capital reserve to JPY 16.5 billion.

Additionally, in order to strengthen cooperation between the subsidiaries and reinforce their joint commitment as equal partners, a Co-CEO management structure will be introduced. In addition to the current CEO, a Co-CEO will be appointed by Mizuho Bank, with the remainder of the board comprised by four directors and auditors appointed by LINE Financial and four by Mizuho Bank, further strengthening the governance structure of LINE Bank Preparatory Company. The appointment of the Co-CEO will be announced once a decision is finalized.