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Dismissal of Japanese Company's Compensation Claim Draws Attention to Impact on Korea-Japan Diplomatic Relations

[Asia Economy Reporter Yoo In-ho] Attention is focused on how the Seoul Central District Court's dismissal of the damage compensation lawsuit filed by forced labor victims against Japanese companies will affect Korea-Japan relations in diplomatic circles of both Korea and Japan.


Both governments have taken a cautious stance, judging that this ruling will not bring about a sudden change in the cooled Korea-Japan relations.

Dismissal of Japanese Company's Compensation Claim Draws Attention to Impact on Korea-Japan Diplomatic Relations [Image source=Yonhap News]


The Civil Division 34 of the Seoul Central District Court dismissed on the 7th the damage compensation lawsuit filed by 85 forced labor victims against 16 Japanese companies including Nippon Steel and Mitsubishi Heavy Industries.


In diplomatic circles, there is speculation that this ruling reflects a consideration of Korea-Japan relations. It is said that the judiciary's stance has changed since President Moon Jae-in stated at the New Year's press conference on January 18 that he was "indeed embarrassed" by the comfort women ruling that held the Japanese government responsible.

Dismissal of Japanese Company's Compensation Claim Draws Attention to Impact on Korea-Japan Diplomatic Relations [Image source=Yonhap News]


Earlier this year on January 8, the court ruled that the Japanese government must pay 100 million won per victim in a lawsuit filed by 12 comfort women victims including the late Grandma Bae Chun-hee, but three months later, in a lawsuit filed by 20 victims and bereaved families including Grandma Lee Yong-soo, it ruled that the Japanese government cannot be held responsible.


However, some domestic opinions suggest that since about ten other lawsuits filed by different forced labor victims are ongoing and there are already rulings where victims have won final victories, the impact on Korea-Japan relations should be observed further.


There are also concerns that rather than a positive effect, the conflicting rulings may make it difficult for the government to establish a consistent response strategy against Japan.


Kim Jae-shin, advisor at the Japan Research Center of the Korea National Diplomatic Academy, said, "The judiciary will make rulings according to conscience and belief, but it may appear that they have not shown consistency regarding principles," adding, "This could be embarrassing for the government or the Ministry of Foreign Affairs handling Korea-Japan relations."


Japan also analyzed that the ruling would not have a major impact on Korea-Japan relations.


The Nihon Keizai Shimbun pointed out that since the plaintiffs intend to appeal, a compensation order could be issued again in the appellate court, making it difficult at present to predict the impact on the deteriorated Korea-Japan relations.


The newspaper analyzed the background of this ruling as reflecting the political stance of individual judges amid a political climate where conservatives and progressives fiercely confront each other, noting that Korean trials tend to be easily influenced by political or public opinion movements.


The Yomiuri Shimbun expected that the impact of this ruling on improving Korea-Japan relations would be limited, stating that the Korean government is seeking a solution acceptable to the plaintiffs regarding the forced labor lawsuits, which have been one of the causes of worsening relations, and that the process of liquidating Japanese companies' assets in Korea, which have already lost other lawsuits, is also underway.


Both the Korean and Japanese governments are maintaining a wait-and-see attitude regarding this ruling.


The Ministry of Foreign Affairs stated, "The government will continue to respect judicial rulings and victims' rights, and while considering Korea-Japan relations, maintain an open stance to discuss reasonable solutions acceptable to all parties with the Japanese side and continue related consultations."


Earlier, Chief Cabinet Secretary Kato Katsunobu of the Japanese government said at a regular press conference the day before that they would monitor the Korean government's trends after this ruling and reiterated the existing claim that "it is important for Korea to take responsibility and respond to resolve bilateral issues."


In this situation, attention is focused on whether the leaders of the two countries will meet on the occasion of the upcoming G7 summit to be held in the UK from the 11th to the 13th.


Although the possibility of a Korea-Japan summit is low, there is a possibility that the two leaders may have a dialogue at the Korea-US-Japan summit. Regarding this, Kyodo News reported on the 5th, citing multiple Japanese government sources, that the Japanese government has decided not to coordinate a Korea-Japan summit in advance.


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