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Kentaro Kawabe, chairman of LY Corporation, who spearheaded the merger of LINE and Yahoo Japan, will step down in 2026 to pursue an AI startup.
He believes he has "done what needed to be done": securing the merger of the PayPay ecosystem and Century.

Author: Mash Yang
December 2025, 12 - Updated on December 24, 2025
in App, Market dynamics, Life, network, software
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A key figure who spearheaded the merger between LINE and Yahoo Japan, and the current head of LINE Yahoo (LY CorporationRepresentative Director and Chairman Kentaro Kawabe announced earlier that he will step down in June 2026, ending his legendary career of more than 20 years within the Yahoo system.

Kentaro Kawabe, chairman of LY Corporation, who spearheaded the merger of LINE and Yahoo Japan, will step down in 2026 to pursue an AI startup.

According to the official announcement, Kawabe submitted his resignation citing "personal reasons" and is expected to officially leave office after the 31st regular shareholders' meeting in June 2026. His successor has not yet been announced.

Successfully Retired: The painful period of merger is over, and PayPay firmly holds the dominant position.

Kentaro Kawabe later posted a sentimental message on his personal "X" account, explaining his reasons for leaving. He believes that with the successful integration of LINE and Yahoo Japan's organization and services, coupled with PayPay mobile payment, which he personally spearheaded, now becoming the number one national application service in Japan, he, as the operator, feels that "what needed to be done has been done."

These words also suggest that after experiencing the data breach scandal and the power struggle with its South Korean parent company NAVER, LINE Yahoo's internal governance structure seems to have stabilized, allowing him to hand over the reins with peace of mind.

The second half is a gamble on AI: From internet giants back to "entrepreneurs"

After leaving his comfort zone, Kawabe did not choose to retire, but instead announced that he would devote himself to the hottest AI wave.

He revealed that he will be embarking on a new career as an individual, aiming to build a startup that combines AI and automation technologies. He plans to spend some time "relearning" and looks forward to exchanging ideas and seeking advice from various sectors.

For this veteran who founded the IT venture capital firm "Dennou-tai" back in 1995 when he was a student, this was undoubtedly a passionate "return to his roots".

A key driver in the history of the Japanese internet

Looking back on Kentaro Kawabe's experiences is almost equivalent to reviewing the history of modern Japanese internet development.

1995: Founded the venture capital firm "Computer Team".

2000: The company was acquired and subsequently entered the Yahoo Japan system. He served as the chief producer of Yahoo! Mobile.

2018: Promoted to President and CEO of Yahoo Japan, leading the company's transformation.

2019-2023: Led the merger negotiations between Z Holdings and LINE, and became the chairman of the new company LINE Yahoo in 2023.

Tags: ReservationPayPayYahoo JapanYahoo!Yahoo JapanKawabe Kentaro
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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