Court notices take effect on sell-off of Japanese firm assets to compensate wartime forced laborers

A woman walks past a sign for Mitsubishi Heavy Industries in Tokyo, Tuesday, July 23, 2019. AP-Yonhap

Public notices issued by a local court to move forward with the legal process of selling off local assets of a Japanese firm to compensate victims of Japan's wartime forced labor took effect Tuesday, in a procedure likely to raise diplomatic tension between Seoul and Tokyo.

The public notification was given to Mitsubishi Heavy Industries after the company failed to carry out a 2018 order from the Supreme Court to compensate five plaintiffs, including one 91-year-old victim.

The notification, sent by a district court in Daejeon, is a procedure employed when a defendant refuses to receive court documents necessary for trial proceedings despite the need to move the pending case forward.

Mitsubishi Heavy Industries reportedly plans to appeal the case in a move likely to stall the compensation process and set the stage for another round of legal battles, which could further strain already taut relations between the two countries.

The two public notices that took effect Tuesday are among four notices related to a court order to seize and sell off the Korea-based assets of the Japanese firm. The other notices are set to go into force Wednesday.

Without any legal moves by the company, the effectuation of the notices allows for the start of the selling of its assets, which involves a set of time-consuming procedures such as an evaluation and auction.

The public notification was based on the 2018 Supreme Court ruling that ordered the company to give 100 million won to 150 million won (US$91,116-136,674) to each of the plaintiffs related to the forced labor during Japan's 1910-45 colonization of the Korean Peninsula.

Tokyo, however, disputed the ruling, arguing that all reparation issues stemming from its colonial rule were settled by a 1965 treaty that normalized relations between the two countries.

Experts have warned that the sell-off of the Japanese company's assets would deal a serious blow to relations between the two countries, as Seoul eyes closer cooperation with Tokyo to make progress in its drive for peace with Pyongyang.

The prospects of renewed tensions between Seoul and Tokyo come as the two countries feel the need to present a united front ahead of next month's launch of the administration of Joe Biden, who has stressed the need for tighter cooperation among U.S. allies to shore up America's global leadership. (Yonhap)