^{Photo: Korea JoongAng Daily}

In the crowded world of messaging apps, few startups have managed to break through international borders as successfully as Naver, the South Korean internet giant behind LINE. What started as a small messaging project has now become Japan’s top messaging platform, boasting over 90 million monthly active users and generating billions in revenue through digital services.

The Birth of LINE

Naver initially launched LINE in 2011 in response to the catastrophic Tōhoku earthquake and tsunami. Traditional communication networks in Japan were overwhelmed, and the need for a reliable messaging platform became urgent. Naver seized the opportunity, creating LINE with a simple, user-friendly interface and the ability to send free messages and make calls over the internet.

How LINE Won Japan

Japan’s messaging landscape was already competitive, with platforms like Yahoo! Messenger and Mixi dominating. Yet LINE quickly differentiated itself with:

• Stickers and emojis: Offering culturally relevant, fun stickers helped LINE connect with Japanese users emotionally.
• Mobile-first experience: Unlike many competitors, LINE was optimized for smartphones, aligning perfectly with Japan’s mobile-heavy market.
• Security and reliability: With encrypted messages and stable servers, LINE gained trust rapidly.

By the end of 2013, LINE had become the number one messaging app in Japan, achieving over 50 million downloads in less than two years.

Expanding Beyond Messaging

LINE didn’t stop at chat. Naver diversified its services, turning the app into a super app:

• LINE Pay: A mobile payment platform competing with Apple Pay and PayPay.
• LINE Games: Engaging users with casual and social games.
• LINE News & Shopping: Keeping users in-app for content and e-commerce.

This strategy not only increased user engagement but also created multiple revenue streams, making LINE one of Asia’s most profitable messaging apps.

Lessons for Startups

Naver’s success with LINE offers crucial insights for startups aiming to scale internationally:

1. Understand local culture: LINE’s stickers and emojis weren’t random—they resonated deeply with Japanese users.
2. Seize opportunities in crises: The 2011 earthquake opened the door for a platform built for reliability and speed.
3. Diversify your ecosystem: Messaging was the entry point; payments, games, and shopping became long-term growth engines.

Today and Beyond

LINE continues to expand across Asia, with Taiwan, Thailand, and Indonesia showing strong adoption. In 2021, Naver merged LINE with Yahoo Japan’s Z Holdings, forming a tech powerhouse valued at over $30 billion. The company is now exploring AI, fintech, and e-commerce innovations, keeping LINE at the forefront of Asia’s digital revolution.

For entrepreneurs and small businesses, Naver’s LINE journey is proof that cultural understanding, timely execution, and strategic diversification can turn a startup into an international powerhouse.