South Korea and Japan narrowly avoided a much-feared disaster in bilateral relations last week. But that does not mean it can’t still occur.

On Friday, South Korea’s Supreme Court chose not to deliver a ruling on an appeal lodged by Mitsubishi Heavy Industries in a controversial case over whether the Japanese company must pay damages to Koreans who worked as forced laborers at its plans during World War II.

The Japanese industrial giant filed the appeal in April against an earlier South Korean court orderthat implied the plaintiff should confiscate the company’s trademark and patent rights worth some 500