[News Terms] 'Jingyong Deposit'... First Withdrawal for Victims of Japanese Forced Mobilization

The 'forced labor deposit' refers to the money deposited by Japan's Hitachi Zosen (Hitachi Chosen) in 2019 with a Korean court in relation to lawsuits concerning forced labor victims during the Japanese colonial period.

Mr. Lee, a forced labor victim of Hitachi Chosen, won a lawsuit against Hitachi Chosen in December last year seeking damages for forced labor. Accordingly, the Supreme Court ruled that Hitachi Chosen must pay Mr. Lee 50 million KRW in compensation along with delayed damages.

Victims' families of forced mobilization during the Japanese colonial period shouted slogans demanding compensation and an official apology after the Supreme Court ruling on the appeal trial of the damages claim lawsuit filed against Mitsubishi Heavy Industries and Hitachi Chosen, held on December 28 last year at the Supreme Court in Seocho-gu, Seoul.
[Photo by Yonhap News]

Earlier, after losing the second trial of this lawsuit, Hitachi Chosen requested the Seoul High Court in January 2019 to halt the forced execution of the compensation payment and deposited 60 million KRW with the court as collateral. This is the only case where a Japanese forced labor company has deposited money with a Korean court.

Mr. Lee’s side proceeded with the process to receive this deposit as compensation, and on the 23rd of last month, the Seoul Central District Court recognized the seizure and collection. On the 6th, the Seoul High Court decided to cancel the collateral on the deposit entrusted by Hitachi Chosen, and this decision was also delivered to Hitachi Chosen.

On the morning of the 20th, Mr. Lee’s side announced at the Seoul Central District Court that they had withdrawn the 60 million KRW deposited by Hitachi Chosen. This is the first case where a forced labor victim from the Japanese colonial period received money deposited by a Japanese company based on the Supreme Court’s final ruling.

Lee Min, a lawyer from the law firm Hearim representing Mr. Lee, said, "This is the first time that money voluntarily paid by a Japanese company has been delivered to forced labor victims," adding, "It is significant in that a de facto compensation has been made by a Japanese company."

In response, the Japanese government and related companies expressed regret and summoned the Korean ambassador to protest. Yoshimasa Hayashi, Japan’s Chief Cabinet Secretary, stated at a press conference, "It is extremely regrettable that an unfair disadvantage is imposed on Japanese companies based on a ruling that clearly violates Article 2 of the Korea-Japan Claims Agreement," and summoned Korean Ambassador Yoon Seok-min to protest.

A Hitachi Chosen official also stated, "When the forced labor lawsuit ruling was finalized at the end of last year, we expressed an extremely regretful position in light of the Japanese government’s view and company policy, and this has not changed."

Japanese media also widely reported on this matter. However, they predicted that the impact on Korea-Japan relations would be limited. The Yomiuri Shimbun reported on the 21st, "This is the first time that a Japanese company has suffered a substantial financial loss due to a forced labor lawsuit," highlighting the actual financial damage to the company. The Asahi Shimbun introduced the statement from Hitachi Chosen’s forced labor victim’s lawyer, saying, "It is meaningful that de facto compensation has been made by a Japanese company."

The Mainichi Shimbun forecasted, "Since plaintiffs in other lawsuits, such as against Nippon Steel, have received compensation amounts from the (Support Foundation for Victims of Forced Labor under Japanese Colonial Rule), the impact of this deposit receipt on Korea-Japan relations is expected to be limited."