Notification Regarding the Absorption-Type Merger (Simplified and Short-Form Merger) of Our Wholly Owned Subsidiary, LINE Pay Corporation

Overview of the Organizational Restructuring

LINE Corporation has resolved to absorb merge its wholly owned subsidiary, LINE Pay Corporation, effective March 31, 2026. This absorption-type merger will be implemented as a simplified merger under Article 796, Paragraph 2 of the Companies Act (surviving company: LINE Corporation) and a short-form merger under Article 784, Paragraph 1 of the Companies Act (dissolving company: LINE Pay Corporation), without shareholder meeting approval. The merger agreement is scheduled to be signed on January 15, 2026. LINE Pay Corporation will be dissolved, and there will be no issuance or allotment of shares or other securities.

Purpose and Background of the Restructuring

Our group is consolidating overlapping business areas to expand group synergies and focus management resources. The mobile remittance and payment service “LINE Pay” in Japan will end on April 30, 2025. In consideration of changes in the business environment, this absorption-type merger will be conducted to improve the efficiency of the group’s management system.

Impact on Shareholders and Investors

As this absorption-type merger targets a wholly owned subsidiary and is a simplified procedure, no shareholder meeting resolution is required, and there will be no allotment of shares. Post-merger, there will be no changes to our company name, location, representative, business content, capital, or fiscal term. The impact on consolidated financial results is minor, with tax burden reduction effects expected in the current period.