SEOUL -- While expressing his intention to resolve through dialogue the litigation by former wartime requisitioned workers, at a ceremony Saturday marking liberation from Japanese rule, South Korean President Moon Jae-in stopped short of making consessions over his position in principle, which respects the ruling of the South Korean Supreme Court that ordered Japanese companies to pay compensation. There is still no scope for avoiding an order to sell assets of Japanese companies.
-- Closed-door telephone talks
"We have discussed with the Japanese government a peaceful solution that the victims can agree to," Moon said in his speech. "The door is open for discussion. The South Korean government is ready to face the Japanese government at any time."
A source related to the presidential office explained his remarks, saying, "If there is any way other than compulsory execution [of the asset sales], he is happy to talk with Japan as much as possible."
An order to sell the assets could prompt the Japanese government to take countermeasures, further damaging the South Korean economy, which has already been hit hard by the novel coronavirus. This concern seems to be pushing Seoul to hold bilateral talks.
Senior officials from the two governments held a closed-door telephone conference in early July, a South Korean government official said. In the talks, the two sides agreed to avoid a situation that would seriously damage bilateral relations and to work toward a peaceful solution through dialogue.
Amid the difficulty of finding a solution through diplomatic negotiations, the South Korean government is said to be figuring out procedures and ideas for solving problems by looking at various scenarios.
Among the measures Seoul is considering is one that would prevent Japanese companies from being damaged by the order to sell the assets. It is up to Moon which scenario will be chosen, an official concerned said.
-- Principle unchanged
In his speech, however, Moon emphasized the legitimacy of the South Korean government's previous claims.
"The Supreme Court ... ruled that the right of an individual to claim damages against unlawful acts had never been waived. A Supreme Court ruling has the highest legal authority and executory power within the Republic of Korea," he said.
Although he accepts negotiations with Japan, he has no intention of yielding the principle of implementing the ruling.
Moon did not mention specific measures to solve the problem. There has been no change in his stance of seeking that the Japanese side find a solution to the deadlock.
It is also unclear how long the Moon administration will be open to dialogue.
In his Liberation Day speech on Aug. 15 last year, Moon showed a flexible stance, saying, "If Japan chooses the path of dialogue and cooperation, we will gladly join hands."
However, a week later on Aug. 22, Seoul decided to nullify the General Security of Military Information Agreement (GSOMIA) between Japan and South Korea, because Japan did not withdraw its cabinet decision to exclude South Korea from the preferential treatment list eligible for simplified export procedures.
Due partly to pressure from the United States to continue the GSOMIA, South Korea suspended the decision on Nov. 22 last year, just before the agreement was annulled. But even after that, Seoul has insisted that the agreement can be terminated at any time.
The renewal of the GSOMIA, scheduled for late this month, could rekindle the problem.
-- Decline in support
South Korea's domestic affairs could also affect future developments.
Since May, the Moon administration's approval rating has been on a downward trend, and the administration's position has been shaky. This is due to a series of scandals involving ruling party officials and public discontent over soaring real estate prices in the Seoul metropolitan area. The approval rating for the second week of August, surveyed between Aug. 11 and 13 and announced by Gallup Korea on Friday, was 39%, the same as the record low of last October.
If the fall in approval rating does not stop, a scenario cannot be excluded in which the Moon administration will shift to an anti-Japan stance and the asset sales will be realized, according to a specialist on Japan-South Korean relations in South Korea.
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