SEOUL -- Two years will have passed Sunday since the South Korean Supreme Court ordered Mitsubishi Heavy Industries, Ltd. to pay compensation to former wartime workers from the Korean Peninsula. As procedures to convert the company's seized assets into cash to pay the compensation are expected to take more time, the South Korean government apparently aims to extract concessions from the Japanese side, which has refused to accept such court rulings.
In one lawsuit filed against Mitsubishi Heavy by five plaintiffs, including members of the Korean Women's Volunteer Labor Corps, who were mobilized to Japan during World War II, the Japanese company was ordered to pay compensation of 100 million won to 150 million won (about 9.4 million yen to 14.1 million yen) to each plaintiff. The top court finalized the ruling in November 2018. The Japanese government protested that the wartime labor issue had already been resolved under the 1965 Agreement on the Settlement of Problems concerning Property and Claims and on Economic Cooperation between the two countries. Mitsubishi Heavy has taken a stance not to pay the compensation.
In March 2019, four of the plaintiffs, excluding one who had died, sought to have a South Korean court seize the company's assets. The rights to two trademarks and six patents worth a total of about 804 million won (about 75.8 million yen) were seized.
The Japanese government has refused to accept delivery of lawsuit-related documents. As the court proceedings were delayed due to the failure to complete delivery of the documents, the South Korean court used the process of "public notification" -- through which legal documents are regarded to have been delivered to the concerned parties by posting them on its website for a certain period of time -- in September and October this year. Through this process, a "hearing" for Mitsubishi Heavy to state its opinion on the sale of its assets was deemed to have been held in November. The company will be deemed to have been notified of the court decision on the seizure of the assets on Dec. 30.
The next focus will be on a court order on the sale of the seized assets. The four plaintiffs sought a court order for the liquidation of the assets in July 2019. Even though the order is issued, certain procedures have to be taken to convert the assets into cash.
A formal appraisal is required to establish the value of the rights to the trademarks and patents. According to a lawyer in South Korea, an appraiser certified by the district court will determine the minimum price for an auction.
If Mitsubishi Heavy files an immediate appeal, the appropriateness of the procedures will be examined by the appeals court. Once all the procedures are completed and a buyer is determined after the assets are auctioned off, the assets will be converted into cash.
In a lawsuit against Nippon Steel Corp., formerly known as Nippon Steel & Sumitomo Metal Corp., in which similar procedures are being taken, the company filed an immediate appeal against the asset seizure in August. The appeals court has not issued a ruling.
A legal source said converting the assets into cash would take "several years."
The South Korean government, which has continued talks with the Japanese government to resolve the wartime labor issue, apparently intends to extract some concessions, such as financial compensation for the plaintiffs, as the lawsuits are likely to be prolonged.
On Nov. 14, South Korean President Moon Jae-in proposed close cooperation with Japan toward the Tokyo Olympics and Paralympics next year. Senior members of South Korea's ruling party also stressed the importance of cooperation for the Tokyo Games, one after another. They appear to intend to enhance the mood of friendship between the two countries to make progress in bilateral talks on the wartime labor issue.
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