Nippon Steel Files Immediate Appeal Against Asset Sale Order Following Forced Labor Compensation Ruling

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Nippon Steel, whose assets in South Korea were seized following a final court ruling ordering compensation to victims forcibly conscripted during the Japanese colonial period, filed an immediate appeal on the 12th against the court's order to sell its assets.

A Nippon Steel official stated in a phone interview with Yonhap News that they could not accept the Daegu District Court Pohang Branch's order to sell assets and therefore filed an immediate appeal on the same day. Nippon Steel is known to maintain the position that "the forced conscription issue was completely resolved under the Korea-Japan Claims Agreement."

On the 30th of last month, the Daegu District Court Pohang Branch issued an order to sell PNR shares, which are part of Nippon Steel's assets located in South Korea. Nippon Steel had forcibly conscripted laborers during the Japanese colonial period.

Despite the South Korean Supreme Court ruling in October 2018 that Nippon Steel must compensate each forced labor victim with 100 million won, the company has not complied. Consequently, the plaintiffs (forced labor victims) applied for and obtained approval to seize Nippon Steel's assets and are now proceeding with legal steps to sell the PNR shares to receive compensation.

However, Japan's Ministry of Foreign Affairs has not properly delivered court documents such as overseas service requests and has returned them, showing a lack of cooperation in the judicial process. Nippon Steel continues to contest the court's decisions, so it is expected that a considerable amount of time will be required before the actual sale takes place.

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