2018.11.27 ALL
TOKYO – November 27, 2018 – LINE Corporation ("LINE") and Mizuho Financial Group, Inc. ("Mizuho Financial Group") agreed today to establish a preparatory company through joint investment of their subsidiaries, LINE Financial Corporation ("LINE Financial") and Mizuho Bank, Ltd. ("Mizuho Bank"), respectively. The preparatory company will plan and consider the establishment of a new bank under the premise that necessary permits and licenses will be obtained by regulatory authorities.
Under the corporate mission of "Closing the Distance," LINE and LINE Financial operate LINE Smart Invest and LINE Insurance through the LINE messaging app and prepare additional financial services, including other securities and loans, to close the distance between people, money, and financial services. Facing numerous challenges and user needs in the finance domain, LINE and LINE Financial decided to enter the banking business to bring users even closer to finance by providing financial services that are more convenient and easier to use.
Mizuho aims to pursue better use of technologies and to provide convenient financial services to a broader customer base by offering an open platform for third parties, utilizing its financial expertise. Mizuho, utilizing its financial expertise, has decided to start a new bank with LINE in order to provide services that are more appropriate to its customers, especially to the smartphone generation.
With the rich user base of over 78 million MAU* and exceptional user interface and experience that LINE offers combined with Mizuho Bank's expertise in the banking business, LINE and Mizuho Financial Group pursue to establish a new bank, a "smartphone bank" connected to the LINE app, that is user-friendly with the possibly to change banking into a business that is more personable and intimate.
* Number of monthly active users in Japan
Overview of the new bank and other details, including service contents and schedules, will be announced upon consideration and confirmation by the preparatory company.
Overview of Joint Investment Company
(1) Name: LINE Bank Preparatory Company, Inc. (tentative)
(2) Location: To be determined
(3) Representative: To be determined
(4) Capital and Capital Reserve: JPY 2 billion
Share Structure: LINE Financial Corporation: 51, Mizuho Bank, Ltd.: 49%
(6) Date of Establishment: To be determined
LINE Corporation Overview
(1) Name: LINE Corporation
(2) Location of Head Office: JR Shinjuku Miraina Tower 23F, 4-1-6 Shinjuku, Shinjuku-ku, Tokyo
(3) Representative: Takeshi Idezawa, Representative Director and CEO
(4) Business: Provision and operation of the LINE messaging app and content and services made available on the LINE platform, in addition to other web service businesses and AI businesses
(5) Capital: JPY 95.7 billion (as of September 30, 2018)
(6) Date of Establishment: September 4, 2000
Mizuho Financial Group, Inc. Overview
(1) Name: Mizuho Financial Group, Inc.
(2) Location of Head Office: Otemachi Tower, 1–5–5, Otemachi, Chiyoda–ku, Tokyo
(3) Representative: Tatsufumi Sakai, President and Group CEO
(4) Business: Banking holding company
(5) Capital: JPY 2.2565 trillion
(6) Established: January 8, 2003
LINE Financial Corporation Overview
(1) Name: LINE Financial Corporation
(2) Location of Head Office: JR Shinjuku Miraina Tower 23F, 4-1-6 Shinjuku, Shinjuku-ku, Tokyo
(3) Representative: Takeshi Idezawa, Representative Director and CEO
(4) Business: Provision of financial services
(5) Capital: JPY 22.5 billion (as of October 31, 2018)
(6) Established: January 10, 2018
Mizuho Bank, Ltd. Overview
(1) Name: Mizuho Bank, Ltd.
(2) Location of Head Office: Otemachi Tower, 1–5–5, Otemachi, Chiyoda–ku, Tokyo
(3) Representative: Koji Fujiwara, Representative Director, President, and CEO
(4) Business: Banking
(5) Capital: JPY 1.4040 trillion
(6) Established: July 1, 2013