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TOKYO, March 23 - SoftBank's internetbusiness Z Holdings said on Tuesday it would haltaccess to chat app Line's user data from within China and stopstoring user content in South Korea after media reports lead toscrutiny of the tech firm's data management.
Z Holdings Co-Ceo Takeshi Idezawa apologised at a pressbriefing, saying the firm needed to work to regain users' trustfollowing an Asahi newspaper report that it let engineers inChina access user data without informing them.
Backed by South Korea's Naver Corp and withstrongholds in Thailand, Taiwan and Indonesia, Tokyo-based Linemerged with Yahoo Japan this month creating a pan-Asiachallenger to face down larger tech rivals.
However, Z Holdings has been left scrambling to tighten itsdata protection as companies around the world come underscrutiny over their relations with China at a time of elevatedfriction with the United States.
Earlier on Tuesday shares in e-commerce company Rakuten, which has launched a mobile network, fell after mediastories highlighted risks from a recently announced stake saleto China gaming giant Tencent. REUTERS