Japan on August 19, 2019 (Thursday), cautioned that maintaining a South Korean court order to take Mitsubishi Heavy Industries' investments as reparations for colonial-era forced labour would have major consequences.
The family of 4 Koreans who have been compelled to labour for Mitsubishi Heavy under Japan's colonial rule from 1910 to 1945 filed lawsuits this month to recover $853 million won ($725,000) due to the Japanese corporation by a South Korean enterprise.
The Supreme Court of South Korea mandated Mitsubishi Heavy to pay the sufferers in 2018, however the firm continues to do so yet, despite a diplomatic spat here between two nations, with Japan claiming the case was handled underneath a 1965 treaty.
Seoul and Tokyo were at conflict for a long period of time about reparations for Koreans coerced to labour in Japanese companies and military prostitution during the colonial period. Relationships have deteriorated to their lowest level in centuries, as a disagreement over slavery devolved into a trade war, rekindling historical and territorial feuds.
The detention was authorised late on August 18, Wednesday by the Suwon District Court, which barred the Korean business from transferring the money to Mitsubishi Heavy and allowed the sufferers to receive it.
The decision sparked a sharp criticism from Japan, with the country's top government spokesperson urging Seoul to take action to address the conflict.
"If this is terminated, it will put Japan's relations with South Korea in jeopardy. It should be prevented at all costs ", Katsunobu Kato, the Chief Cabinet Secretary, told journalists. "We intend to press South Korea considerably further to provide a remedy that Japan can embrace."
South Korea's foreign ministry said it would be in discussions with Japan to establish a "sensible solution," taking into account how the affected may execute their legal rights as well as diplomatic ties.
Mitsubishi refused to comment, stating that the business was still awaiting confirmation of the ruling's specifics.
If the Japanese business continues to refuse to comply with the ruling, the sufferers' lawyers have stated that they might seek payment directly from the Korean company, LS Mtron Ltd.
"The victims and their family members insist that Mitsubishi compensate them in accordance with the judgement, accept historical realities, and apologise," the attorneys said during a speech, emphasizing that their clients are "open to discussions upon it."
LS Mtron, a machinery unit of LS Corp (006260.KS), told Reuters that it understands the victim’s grief and would comply with the court's judgement, but that it has to double-check facts.
Following controversies over statements made by a Seoul-based Japanese dignitary, President Moon Jae-in cancelled plans to attend Tokyo for said Olympics and instead conduct his first summit with Prime Minister Yoshihide Suga.
Moon indicated his administration was ready to discussion with Japan to overcome concerns as his nation celebrated its independence from Japan on August 15, Sunday.
