Comfort Women Compensation Ruling... Trade Authorities "Monitoring the Situation"

Export Restrictions and Trade Conflicts Everywhere... Authorities "Do Not Presume Scenarios"
Export Restrictions WTO Dispute and Stainless Steel Bar Trade Dispute Appeals Ongoing
Potential Negotiation Disruptions in Materials, Parts, and Equipment if Pursuing CPTPP Membership

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] In the first trial ruling of the damages claim lawsuit filed by the former comfort women victims against the Japanese government, the Seoul Central District Court ruled in favor of the plaintiffs on the 8th, and trade authorities stated that they will "carefully monitor the situation."

On this day, the Civil Division 34 of the Seoul Central District Court (Presiding Judge Kim Jeonggon) ruled in favor of the plaintiffs in the damages claim lawsuit filed by 12 comfort women victims, including the late Bae Chunhee, against the Japanese government, ordering "payment of 100 million won per plaintiff."

In the context where the Japanese government has threatened retaliation over the liquidation of seized assets in Korea of Japanese companies such as Nippon Steel and Mitsubishi Heavy Industries, which used forced labor in the forced labor victim lawsuits, this time the Japanese government is the defendant in a comfort women victim compensation ruling.

Regarding this, a trade authority official said, "We are observing the situation and reviewing various possibilities," but added, "We cannot preemptively state a position based on any specific scenario."

Japan has not yet lifted the export restrictions imposed on Korea in July 2019. In July last year, a World Trade Organization (WTO) panel was established to examine the illegality of Japan's export restrictions, and the panel report (first instance judgment) is currently awaited.

In early December last year, Korea partially lost in the WTO stainless steel bar dispute, and the Ministry of Trade, Industry and Energy announced plans to file an appeal.

From Korea's standpoint, which is weighing whether to join the mega free trade agreement (FTA) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), there may be difficulties in negotiations with Japan over market liberalization rates (opening rates) for sensitive items such as materials, parts, equipment, and machinery when promoting CPTPP membership in the future.

A trade authority official said, "We will respond promptly depending on the situation," but refrained from further comment.

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