South Korean plaintiffs in a World War Two forced labor lawsuit have initiated legal action to seize assets of Nippon Steel & Sumitomo Metal Corp, according to reports. The move follows a 2018 court ruling that ordered the Japanese company to compensate four South Koreans for wartime labor, reigniting diplomatic tensions between the two nations.
The plaintiffs sought to freeze Nippon Steel's 30% stake in a South Korean joint venture with POSCO, valued at approximately 11 billion won ($9.83 million). This development could further strain relations between Seoul and Tokyo, which have remained tense since a 1965 treaty normalized diplomatic ties but failed to resolve lingering wartime grievances.
Japan's government has consistently maintained that all wartime reparations were settled through the 1965 agreement. However, South Korean courts have ruled that private companies must address historical labor abuses, leading to ongoing legal battles. Nippon Steel described the court decision as 'extremely regrettable' but indicated it would review potential next steps.
Representatives for the South Korean court overseeing the joint venture's operations could not be reached for comment. Nippon Steel's corporate office remained unresponsive to repeated calls, while POSCO declined to provide a statement. Similar legal actions against other Japanese firms, including Mitsubishi Heavy Industries, are also under consideration.
