The operator of the Line messaging app says it's having trouble complying with a Japanese government request in connection with leaks of user data.
The communications ministry wants LY Corporation to revise its parent company's capital relationship with South Korean IT firm Naver.
The request is part of a second round of "administrative guidance" from the Japanese government. It was issued in April following the first one in the previous month.
The instructions were in response to the data leaks.
LY submitted a detailed report to the ministry on Monday laying out measures aimed at preventing a recurrence of the problem.
The company says it believes that revamping the capital in question in a short period of time would be difficult.
Naver was the cause of the data breach. The South Korean company currently holds a 50-percent stake in LY's parent company.
Sources close to the matter say Naver has been reluctant to revise its capital ties, including selling its shares. The two firms are at odds on this issue.
LY says in the report that it will continue to work on the problem and try to push negotiations forward.
In a related development, the company says it plans to split off its network from Naver's by March 2026, nine months earlier than originally planned.