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| Unification Minister Kim Yeon-chul, right, shakes hands with Japanese Ambassador to South Korea Yasumasa Nagamine at the government complex in Seoul, Wednesday. Japanese semiconductor company Ferrotec Holdings has decided to shut down its business in Korea, reportedly citing South Korea's top court ruling in favor of colonial-era forced labor victims. Yonhap |
By Park Ji-won
Japanese semiconductor company Ferrotec Holdings has decided to shut down its business in Korea, reportedly citing South Korea's top court's recent ruling in favor of colonial-era forced labor victims.
Japan's Chief Cabinet Secretary Yoshihide Suga confirmed this in a media briefing Thursday, pointing to worsening sentiment among Japanese entrepreneurs about doing business in Korea.
Suga said the Japanese government will closely cooperate with the outgoing firm and take measures to protect Japanese firms in South Korea.
He said the South's government didn't come up with any concrete measures to improve the troubled situation caused by the forced labor rulings, and the Japanese administration is taking seriously moves by prosecutors to seize assets of Japanese firms.
Suga added that Tokyo asked Seoul to negotiate over the political issue based on the two countries previous agreements.
The remarks came amid strained relations between the two countries over the forced labor rulings, last year. The Supreme Court here ruled in favor of dozens of Korean forced labor victims against Mitsubishi Heavy Industries and Nippon Steel & Sumitomo Metal Corporation, ordering the two companies to compensate the people for their damages. Politicians from the two countries have been exchanging barbs, blaming each other over the issue.
"Japanese firms here are anxious about the situation caused by the forced labor rulings," a political source said.
In February, three former employees of the subsidiary were indicted by South Korean prosecutors on charges of violating laws on trade secret protection and unfair competition.
The Japanese company announced Tuesday it will end the business of its South Korean subsidiary citing concerns over the court rulings.
"There are concerns that judicial independence may not be fully secured for Japanese firms in South Korea," Ferrotec Holdings said in a press release Wednesday.
"We've concluded that it is most suitable to cut future risks at this stage," the company added.
