'Forced Labor Company' Nippon Steel to "File Immediate Appeal" Ahead of South Korean Court's Asset Seizure Confirmation

[Asia Economy Reporter Jeong Hyunjin] Nippon Steel (formerly Shin Nippon Steel), the defendant in the forced labor compensation lawsuit during the Japanese colonial period, has announced its intention to file an immediate appeal regarding the South Korean court's asset seizure order, NHK and others reported on the 4th. This is interpreted as an effort to prevent the confirmation of the order as the court's seizure order for Nippon Steel's assets in South Korea took effect from midnight on the same day.

According to reports, Nippon Steel stated, "We understand that the issue surrounding forced labor was 'completely and finally resolved' by the Korea-Japan Claims Agreement, an official agreement between the two countries," and added, "Considering the diplomatic negotiations between the governments of Korea and Japan, we will immediately file an appeal regarding the procedures for future asset disposition."

Previously, on October 30, 2018, the South Korean Supreme Court ruled in a retrial for damages filed by four forced labor victims against Nippon Steel, ordering compensation of 100 million won each. After Nippon Steel showed a refusal to accept the ruling, the plaintiffs applied to the court in December of the same year to seize shares of PNR, a joint venture between Nippon Steel and POSCO, to secure the damage claims.

In response, the Pohang Branch of the Daegu District Court decided in January last year to seize 81,075 shares (worth approximately 400 million won based on face value) corresponding to the damage claim amount, and the plaintiffs also applied for the sale of these assets in May last year. However, the Japanese government refused to deliver the South Korean court's asset seizure decision to Nippon Steel, and the Pohang Branch initiated the public notice delivery procedure for the related documents on June 1, which took effect from that day.

Public notice delivery is a system where, if the address of the opposing party in a lawsuit is unknown or if they refuse to receive documents and do not respond to the trial, the contents are posted on the court bulletin board or official gazette and are considered delivered. However, if Nippon Steel files an immediate appeal, it legally has the effect of suspending enforcement. The deadline for the immediate appeal is until midnight on the 11th.

If the stock seizure order is confirmed, the next step can proceed to the appraisal and sale order of the shares, entering the sale procedure, so it appears that Nippon Steel has expressed its intention to file an immediate appeal to buy time. NHK reported, "In a situation where the South Korean government does not change its position of respecting the judiciary's judgment, if the court orders the asset sale and cash conversion occurs, the Japanese government is considering countermeasures, raising concerns that Korea-Japan relations may further deteriorate."

This content was produced with the assistance of AI translation services.