South Korea sold off the assets of Japanese companies that forced laborers on the 4th, and Japan said it would take retaliatory measures
The paper reporter Nan Boyi
The procedures for the sale of assets of Japanese companies in South Korea involved in the Japan-South Korea forced labor case will be officially launched on August 4, and the Japanese government has made it clear that it will "retaliate." According to the analysis, if Japan puts it into practice, the relationship between South Korea and Japan is likely to further trigger economic disputes due to historical issues, and from then on to a disastrous ending.
According to reports, in the final judgment, the South Korean court previously demanded that the Japanese company Nippon Steel & Sumitomo Financial compensate South Korean confiscated workers and seized the company’s assets in South Korea. The seizure procedures will be completed on August 4, and the court can proceed from the 4th. Procedures concerning the forced sale of stocks.
"Yomiuri Shimbun" reported on August 2 that if the assets of Nippon Steel & Sumitomo Metal (now Nippon Steel) are sold, the Japanese government plans to take countermeasures, and a variety of content is currently being discussed. Japan’s Chief Cabinet Secretary Yoshihide Suga appeared on Yomiuri TV on the 1st and stated that “various countermeasures are being discussed” and “the direction has been actually decided” on the issue of asset sale. The retaliatory measures mentioned include raising tariffs, stopping remittances, restricting the issuance of visas, seizing South Korean assets in Japan, and temporarily recalling the Japanese ambassador to South Korea.
According to Yonhap News Agency’s news on the 3rd, South Korea’s Ministry of Foreign Affairs stated that the government is paying close attention to the possibility that the Japanese side will take retaliatory measures after the court ordered the sale of the property of forced labor companies and is studying a response plan.
According to a report by the Korean National Daily on the 3rd, the actual realization of Nippon Steel's assets in South Korea will take a long time to perform the procedures for the sale order trial, stock appraisal, and sale. Therefore, it is unclear when Japan will take retaliation measures. . In addition, if Japan forcibly retaliates, the country may suffer the same losses as when it restricted exports last year, so Japan is also more cautious. "Nihon Keizai Shimbun" expressed concern on the 2nd that "restrictions on the issuance of visas or financial sanctions will adversely affect Japanese companies or citizens." Therefore, compared with the immediate retaliation, the Japanese government is more likely to pay attention to the sale procedure. "Yomiuri Shimbun" quoted a Japanese government official as saying that "the deadlock will continue until the end of the year." Kyodo News also quoted a number of government officials as an analysis, "(The Japanese government) stated that it will take retaliation and intend to strengthen containment and stop South Korea. Realize."
According to reports, when Japan underwent colonial rule on the Korean Peninsula from 1910 to 1945, it forced local people to work as laborers in Japan. Since the late 1990s, some South Korean workers and their families began to file lawsuits against Japanese companies.
In October 2018, the Korean Supreme Court sentenced the Japanese company to compensate 4 Korean workers. In November, it also ruled on two cases involving Mitsubishi Heavy Industries in support of South Korean workers' claims. However, Japan does not agree with this judgment. The Japanese side believes that, based on the "Korea-Japan Claim Agreement," labor issues and other civil claims have been resolved. However, South Korea said that the bilateral agreement did not terminate citizens' right to claim compensation.
In July 2019, Japan began to implement export restrictions on South Korea. The South Korean side believes that this is Japan's retaliation against the forced labor sentence, and Japan denies it. Since then, South Korea and Japan have continued to engage in hostility due to various economic and military issues.
On June 3 this year, the Pohang Branch of the Daegu District Court in South Korea decided to serve the Japanese company involved in the case with a decision to seize its property in South Korea in the form of an announcement. According to the interpretation of the Korean legal profession, this move can be regarded as an order to seize the stocks held by the Japanese company involved. This order will complete the service procedure on August 4, and the court can order the forced sale of the stocks held by the Japanese company accordingly.