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Wednesday, January 09, 2019, 14:04
Japan to seek talks with S. Korea over Nippon Steel court decision
By Agencies
Wednesday, January 09, 2019, 14:04 By Agencies

In this Oct 1, 2012 photo, Nippon Steel and Sumitomo Metal chairman and CEO Shoji Muneoka (right) and then president Hiroshi Tomono unveil the company's plaque in Tokyo. A South Korean district court said on Jan 9, 2019 it has decided to freeze Korean assets held by the Japanese company. (YOSHIKAZU TSUNO / AFP)

SEOUL/TOKYO — Japan will seek talks with Seoul regarding a South Korean court decision against a Japanese company over the issue of wartime forced labour, its top government spokesman said on Wednesday. 

The Daegu District Court's branch office in the southeastern city of Pohang said Wednesday it has decided to freeze the local assets of Nippon Steel & Sumitomo Metal Corp, following a request by lawyers for plaintiffs in a wartime forced labor case to seize Korean assets held by the Japanese company as it was refusing to compensate the former laborers.

The South Korean court's decision to freeze the local assets of the Japanese company could further complicate ties between the two nations, embroiled in a dispute over whether a South Korean warship had locked its targeting radar on a Japanese patrol plane last month

READ MORE: Lawyers try to seize Japanese assets over Korean forced work

Japan's Chief Cabinet Secretary Yoshihide Suga told a news conference the court decision was "extremely regrettable" and the government took the situation seriously. 

The relevant Japanese ministers would gather on Wednesday afternoon to discuss how to respond, he said. 

"We plan to request the South Korean government for consultation," based on a 1965 treaty that normalized ties between the neighbours, Suga added. 

Nippon Steel & Sumitomo Metal Corp said it had not received a document from the South Korean court. 

"We will consult with Japanese government and take an appropriate measure," a company spokeswoman said. 

She reiterated that there was no change in the company's stance that all matters concerning wartime reparations were settled under the 1965 agreements between the two nations. 

ASLO READ: ROK warns Japan in row over wartime forced labour

The Japanese company holds 2.34 million shares, or around US$9.7 million, in its joint venture in Pohang with South Korean steelmaker POSCO.

South Korea's Yonhap news agency, citing an unidentified official at the Pohang office, reported the district court decided to freeze 81,075 of the 2.34 million shares, not the whole shares. Yonhap said the asset freeze will become effective after a related court document is delivered to the joint venture.

The district court said it couldn't immediately confirm the Yonhap report.

Ties between the Asian neighbors have been frosty since a South Korean court ruling in October that Nippon Steel and Sumitomo Metal Corp should pay 100 million won (US$90,500) to each of four South Koreans in a World War Two forced labor case. 

In November, South Korea's Supreme Court ordered a second Japanese company, Mitsubishi Heavy Industries, to compensate 10 former Korean workers, drawing strong criticism from Japan.

Japan has urged South Korea to take appropriate steps to avoid measures unfair to Japanese companies. 

The South Korean court's decision could further complicate ties between the two nations, embroiled in a dispute over whether a South Korean warship had locked its targeting radar on a Japanese patrol plane last month.

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