Judgment on Liquidation of Japanese Company Assets Imminent, Government and Victims' Opinions Remain Unclear

[Asia Economy Reporter Yoo In-ho] As the ruling on the cash seizure of Japanese companies' assets related to forced labor compensation approaches, there are prospects that it will be difficult to reach an agreement between the victims and the government.

According to diplomatic circles on the 15th, the issue of cash seizure of domestic assets of Japanese companies ordered to compensate for forced labor during the Japanese colonial period is expected to be decided as early as the 19th. The Civil Division 3 of the Supreme Court, which is hearing the special cash seizure order case for trademark and patent rights of Ms. Kim Seong-ju, a forced labor victim of Mitsubishi Heavy Industries, must decide whether to dismiss the appeal without hearing by the 19th.

If the appeal filed by Mitsubishi Heavy Industries is dismissed and the decision to dismiss without hearing is made, the cash seizure will proceed.

However, the gap between the government and the victims is so wide that it is unclear whether a compromise can be found. The victims declared non-participation, calling the Ministry of Foreign Affairs' submission of a statement to the court at the end of last month, claiming diplomatic efforts on the forced labor issue, a "deceptive act."

For this reason, the third Korea-Japan public-private consultative meeting held on the 9th to discuss compensation for forced labor victims was held without the participation of the victims.

At this meeting, participants listened to opinions on the form, level, and subject of apology and remorse from Japan that Korea desires, and discussed solutions related to the possibility of a cash seizure order for Mitsubishi Heavy Industries' patent and trademark rights around the 19th of this month.

Participants especially emphasized the need for an apology to the victims and exchanged various opinions on the subject and method of the apology.

The Ministry of Foreign Affairs is reportedly considering a plan in which a high-ranking official directly visits the victims to explain the government's position during the process of preparing the final government proposal.

An official from the Ministry of Foreign Affairs said regarding the victims' absence, "We are continuously trying to communicate through other channels," and added, "It is difficult to predict how many more public-private consultative meetings will be held or when they will end."

However, diplomatic circles predict that it will be practically difficult to hold another meeting before the 19th. While the government will communicate with the victims, it is believed that consensus through the public-private joint consultative meeting is impossible.

Accordingly, some in diplomatic circles argue that although the government intends to devise a solution for forced labor compensation to improve Korea-Japan relations, a cautious decision is necessary given the difficulty in reaching agreement with the victims.

A diplomatic expert said, "Although there is urgency, the completion of the cash seizure order is not something the government can decide," and pointed out, "While the deadline for cash seizure cannot be ignored, a rushed plan should not be made without considering the possibility of dismissal by the court."