S.korean Court To Rule On Nippon Steel's Appeal


S.Korean court to rule on Nippon Steel's appeal

A South Korean court has reportedly called on a higher court to reach a decision on an appeal filed by Japan's Nippon Steel over a ruling that allows the steelmaker's assets to be seized for liquidation.

Nippon Steel on August 7 filed an immediate appeal to the Pohang branch of the Daegu District Court. It demands an injunction on procedures to sell its assets to compensate South Korean plaintiffs who say they were forced to work in the company's plants during World War Two.

The assets at stake are the company's shares in a joint venture with South Korean steelmaker POSCO.

Yonhap News Agency and other major South Korean media reported on Monday that the Pohang court decided last Thursday that the appeal has no grounds, and asked the Daegu District Court to examine the appeal and deliver a decision.

Speculation is growing that the possible liquidation of the company's assets may not be forthcoming before the end of the year, as Nippon Steel could take the case to the Supreme Court should the Daegu District Court also reject the appeal.

The case stems from a 2018 South Korean Supreme Court ruling that ordered Nippon Steel to pay compensation to the plaintiffs.

The Japanese government says any right to claims was settled completely and finally in 1965, when the two countries normalized ties. It has urged Seoul to rectify what it calls a situation in which international law is being violated.

Nippon Steel reiterates the government's stance.