A South Korean district court said Wednesday it has decided to freeze the local assets of a Japanese company involved in compensation disputes for wartime Korean labourers.
Last October, South Korea's top court ordered Nippon Steel & Sumitomo Metal Corp to pay 100 million won (USD 88,000) each to four plaintiffs forced to work for the company when Japan colonised the Korean Peninsula from 1910-45.
The Daegu District Court's branch office in the southeastern city of Pohang said Wednesday it had approved a request by lawyers for the plaintiffs to seize Korean assets held by the Japanese company as it was refusing to compensate the former labourers.
Japan maintains all colonial-era compensation issues were settled by a 1965 treaty between the governments.
Yonhap said the asset freeze will become effective after a related court document is delivered to the joint venture.
The district court said it couldn't immediately confirm the Yonhap report.
The asset freeze could further chill diplomatic ties between South Korea and Japan, which are both key US allies in the region.
Many South Koreans still harbour strong resentment against Japan's colonial occupation.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)