Japanese Media: "Forced Sale of Japanese Companies' Assets Will Further Worsen Korea-Japan Relations"

▲Kang Kyung-wha, Minister of Foreign Affairs (left), and Motegi Toshimitsu, Japanese Minister of Foreign Affairs (right) [Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] As the Korean court has decided to initiate the forced asset sale procedures against wartime companies including Nippon Steel, Japanese media unanimously reported on the 4th that there is a possibility of further deterioration in Korea-Japan relations due to retaliatory measures by the Japanese government.

On this day, Kyodo News reported that the Pohang branch of the Daegu District Court has decided to serve public notice regarding the seizure order of Nippon Steel's assets, and it is expected to seriously consider the sale order after August.

Kyodo News stated, "The Japanese government plans to take countermeasures if actual damage occurs to Japanese companies, and in that case, Korea-Japan relations will worsen further."

According to the representatives of the forced labor victims, the Pohang branch ordered public notice of the seizure order decision on shares of PNR, a joint venture between POSCO and Nippon Steel, on the 1st.

Public notice service is a system where if the address of the litigation opponent is unknown or if they refuse to receive documents and do not respond to the trial, the notice is posted on the court bulletin board or official gazette and is considered delivered. According to the court decision, the service will take effect on August 4.

The reason the court made this decision is that following the Supreme Court's forced labor victim compensation ruling in October 2018, the procedure to serve the seizure order on Nippon Steel's assets was underway, but the Japanese Ministry of Foreign Affairs did not respond.

The Sankei Shimbun also expressed concern on the same day about the Korean court's decision to serve public notice for the forced sale procedure of Nippon Steel's assets in Korea.

Sankei reported that the Japanese government is considering double-digit retaliatory options such as seizure of Korean assets and tariff increases on Korean products in preparation for this forced sale of Japanese companies' assets.

Foreign Minister Motegi Toshimitsu stated on Fuji TV, "If the sale of Japanese companies' assets takes place, it will be a serious situation," and added, "We must resolve the issue before that."