You are here: Home » PTI Stories » International » News
Business Standard

S. Korea freezes Japan company assets over forced labour spat

AP  |  Seoul 

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 Corp to pay 100 million won (USD 88,000) each to four plaintiffs forced to work for the company when colonised the from 1910-45.

The Daegu District Court's branch office in the southeastern city of 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.

maintains all colonial-era compensation issues were settled by a 1965 treaty between the governments.

The Japanese company holds 2.34 million shares, or around USD 9.7 million, in its joint venture in with South Korean steelmaker

South Korea's agency, citing an unidentified official at the office, reported the district court decided to freeze 81,075 of the 2.34 million shares, not the whole shares.

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 report.

The asset freeze could further chill diplomatic ties between and Japan, which are both key US allies in the region.

Many South Koreans still harbour strong resentment against Japan's colonial occupation.

In November, South Korea's ordered a second Japanese company, Mitsubishi Heavy Industries, to compensate 10 former Korean workers, drawing strong criticism from

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 09:55 IST