Nip­pon Steel to ap­peal S. Korea rul­ing al­low­ing as­set seizure

The Star Malaysia - StarBiz - - Foreign News -

TOKYO: Ja­pan’s Nip­pon Steel Corp said it will ap­peal a South Korean court rul­ing that al­lows for a seizure of its as­sets – the lat­est de­vel­op­ment in a case that has in­flamed ten­sions be­tween Tokyo and Seoul.

South Korea’s Supreme Court in 2018 or­dered Nip­pon Steel to pay 100 mil­lion won (US$83,800) each to four South Kore­ans as com­pen­sa­tion for forced labour dur­ing World War II, an­ger­ing Ja­pan which says the is­sue of com­pen­sa­tion was set­tled un­der a 1965 treaty and that the rul­ing vi­o­lated in­ter­na­tional law.

A sub­se­quent rul­ing by a South Korean lower court al­lowed for the seizure of Nip­pon Steel as­sets. The Po­hang branch of the Daegu Dis­trict Court has gained the right to start pro­ce­dures to auc­tion off some of Nip­pon Steel’s stake in a joint ven­ture with Posco, South Korean me­dia have re­ported.

Ja­panese Chief Cabi­net Sec­re­tary Yoshi­hide

Suga re­it­er­ated yes­ter­day that the South Korean rul­ing was a “clear vi­o­la­tion of in­ter­na­tional law”, adding that any as­set seizure must be pre­vented to keep the sit­u­a­tion from be­com­ing more se­ri­ous.

Fol­low­ing the rul­ing, Ja­pan last year said it would stop pref­er­en­tial treat­ment for ship­ments to South Korea of three ma­te­ri­als whose pro­duc­tion it dom­i­nates and which are used by firms such as Sam­sung Elec­tron­ics Co Ltd.

Seoul has filed a com­plaint to the World Trade Or­gan­i­sa­tion (WTO) over the ex­port curbs which re­main in place for two of the three ma­te­ri­als. The WTO last month set up a panel to rule on the com­plaint.

Nip­pon Steel holds 81,075 shares in PNR, a South Korea-based joint ven­ture with steel­maker Posco, which are worth about 400 mil­lion won at face value, ac­cord­ing to Yon­hap news agency. — Reuters

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