Advertisement
Japan warns of response if South Korean court seizes Nippon assets for forced labour compensation
- Seoul can begin seizing Nippon Steel’s local assets to pay wartime forced labour compensation to four South Koreans
- The case is one of many thorny issues in Japan and South Korean bilateral ties and will complicate Trump’s efforts to unite the allies against China
Reading Time:4 minutes
Why you can trust SCMP
Japan warned it would respond if South Korea seized the assets of a Japanese company to pay compensation to a group of Korean wartime forced labourers, Deputy Prime Minister Taro Aso said on Tuesday, describing such a move as being in breach of international law.
“If [Japan’s] assets were confiscated ... we would have no choice but to respond, so we must avoid that from happening,” Aso told a regular news conference, after the expiry of a notification period following which a South Korean court can begin the process of liquidating assets of Nippon Steel valued at about 400 million won (US$335,000).
Chief Cabinet Secretary Yoshihide Suga told reporters on Tuesday that Tokyo will “continue to firmly handle” the matter while keeping “a range of options” in mind.
Advertisement
Japanese broadcaster NHK reported that Nippon would appeal the seizure of its assets, which comprise its 30 per cent stake in a joint venture with South Korean steelmaker Posco. No money is expected to move immediately as it will take several months for procedures to be completed.
The development is set to further strain ties between Seoul and Tokyo, complicating the situation for US President Donald Trump as he seeks their help in Washington’s efforts to counter China.
Advertisement
Relations between Japan and South Korea have hit new lows over the compensation and other economic and territorial disputes.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x