{"id":2198462,"date":"2022-08-23T19:12:19","date_gmt":"2022-08-23T10:12:19","guid":{"rendered":"https:\/\/www.nknews.org\/pro\/?p=2198462"},"modified":"2023-04-05T16:11:43","modified_gmt":"2023-04-05T07:11:43","slug":"seoul-avoids-diplomatic-disaster-in-forced-labor-dispute-with-japan-for-now","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/08\/seoul-avoids-diplomatic-disaster-in-forced-labor-dispute-with-japan-for-now\/","title":{"rendered":"Seoul avoids diplomatic disaster in forced labor dispute with Japan \u2014 for now"},"content":{"rendered":"

South Korea and Japan narrowly avoided a <\/span>much-feared<\/span><\/a> disaster in bilateral relations last week. But that does not mean it can\u2019t still occur.<\/span><\/p>\n

On Friday, South Korea\u2019s Supreme Court chose <\/span>not to deliver a ruling<\/span><\/a> 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.<\/span><\/p>\n

The Japanese industrial giant <\/span>filed<\/span><\/a> the appeal in April against an <\/span>earlier South Korean court order<\/span><\/a> that implied the plaintiff should confiscate the company\u2019s trademark and patent rights worth some 500 million won (about $372,000) and use it to fund compensation for the laborers.<\/span><\/p>\n

According to South Korean law, the Supreme Court has four months to decide whether to deliberate on an appeal or dismiss it, so the deadline to make a decision or else provide a rationale for further delay had come. The court dismisses <\/span>some 75%<\/span><\/a> of all civil case appeals, and there is no way to reverse the decision.\u00a0<\/span><\/p>\n

If the Supreme Court had dismissed Mitsubishi\u2019s appeal, the company would have likely had its assets seized in short order. The plaintiffs and their lawyers have <\/span>finished<\/span><\/a> nearly all preparations for the eventual confiscation and sale of Mitsubishi\u2019s property, and the absence of a Supreme Court decision remains the only legal obstacle to starting procedures.<\/span><\/p>\n

Such a turn of events would lead to a massive diplomatic scandal. The Japanese side, including the government, business community and <\/span>general public<\/span><\/a>, firmly believe that the 1965 Treaty on Basic Relations between Seoul and Tokyo resolved all issues related to Japan\u2019s colonial rule of the Korean Peninsula. They see South Korean attempts to revive these issues as significant violations of the treaty.<\/span><\/p>\n

For now, the Supreme Court has postponed its decision by not taking a definitive stand. But it won\u2019t be able to put off a decision indefinitely, even though the deadline to dismiss the appeal without providing reason has passed, and a ruling against Mitsubishi would also deliver a likely fatal blow to the Yoon administration\u2019s ambitions of improving ties with Tokyo.<\/span><\/p>\n

\"\"

President Yoon Suk-yeol paying respect to former Japanese Prime Minister Shinzo Abe in July 2022 | Image: South Korean Presidential Office<\/p><\/div>\n

WEIGHING THE CONSEQUENCES<\/b><\/p>\n

The Supreme Court\u2019s decision was likely influenced by its understanding of the grave political and diplomatic consequences of seizing Mitsubishi\u2019s property.<\/span><\/p>\n

Separation of powers makes it difficult for the Yoon administration to directly control the court\u2019s ruling, but the foreign ministry did <\/span>send<\/span><\/a> an official letter to the court asking to postpone the decision. This likely had some impact on the situation.<\/span><\/p>\n

The administration fears the inevitable result of any seizure of Japanese companies assets: what will surely be an unprecedented deterioration in ties between Japan and South Korea, two major U.S. allies and developed East Asian democracies.<\/span><\/p>\n

There are reasons to see a decision against Mitsubishi like Japan as a violation of the 1965 treaty. Both countries agreed that it completely and finally settled all issues related to the colonial period.\u00a0<\/span><\/p>\n

But victims of Japan\u2019s colonial rule \u2014 including so-called comfort women forced into <\/span>prostitution<\/span> and forced laborers \u2014 and some on South Korea\u2019s nationalist left have <\/span>objected<\/span><\/a> to the deal because it was signed prior to South Korean democratization.\u00a0<\/span><\/p>\n

In 2018, the ROK Supreme Court <\/span>accepted<\/span><\/a> the demands of Korean plaintiffs who insisted Mitsubishi owes them compensation for the wartime abuse, arguing that the 1965 treaty did not cover individual claims against Japan. Tokyo retaliated to the decision by introducing sanctions against South Korean companies, and Seoul retaliated in turn by <\/span>threatening<\/span><\/a> to end a bilateral military information-sharing deal with Tokyo.<\/span><\/p>\n

Rejecting Mitsubishi\u2019s appeal would trigger another such vicious cycle of retaliation and counter-retaliation between the two neighbors, and the resultant damage would likely be huge. Recently, South Korea\u2019s Ambassador to Japan Yun Duk-min <\/span>said<\/span><\/a> economic losses from the diplomatic fallout would likely reach hundreds of billions of dollars, an exaggerated estimate but one that reflects the massive disaster that would result from reciprocal sanctions.<\/span><\/p>\n

\"\"

U.S. Secretary Antony Blinken, Japanese, Foreign Minister Hayashi, and South Korean Foreign Minister Park in Bali in July 2022 | Image: Secretary Antony Blinken Twitter<\/p><\/div>\n

SEOUL\u2019S OPTIONS<\/b><\/p>\n

The likely consequences of seizing Mitsubishi\u2019s assets are clear, and South Korean President Yoon Suk-yeol has <\/span>said<\/span><\/a> his government is “deeply considering” ways to compensate the former laborers in a way that does not conflict with Japan’s concerns.<\/span><\/p>\n

But what would such solutions entail?<\/span><\/p>\n

For one, Yoon gave de facto assurances that the assets of Mitsubishi and other Japanese companies that used South Korean forced labor will not be seized. Japan\u2019s foreign minister Yoshimasa Hayashi welcomed this statement and <\/span>said<\/span><\/a> it indicated President Yoon\u2019s \u201cstrong desire\u201d to improve relations between two countries. Japanese media have also welcomed the current administration\u2019s position.<\/span><\/p>\n

However, the Japanese government is waiting for more details on how the Yoon\u2019s administration is going to handle this issue.<\/span><\/p>\n

Currently observers see only two major ways to get around the crisis. First, with government encouragement, Korean and Japanese businesses could <\/span>create<\/span><\/a> a <\/span>joint fund<\/span><\/a> that would be used to pay compensation to the former forced laborers.<\/span><\/p>\n

Alternatively, the ROK government can pay compensation itself, without asking for money from Mitsubishi and other Japanese companies, acting as a <\/span>subrogation<\/span><\/a> party.<\/span><\/p>\n

However, the second option will only be possible if South Korea can win the support of the former forced laborers and their representative. The government has a chance to succeed in this endeavor, but this cannot be taken for granted: Many ex-laborers and their representatives <\/span>insist<\/span><\/a> that they will be satisfied only with apologies and compensation from the Japanese side.<\/span><\/p>\n

Time is limited. Some observers <\/span>claim<\/span><\/a> that the Supreme Court has no choice but to make a decision by the end of August since a judge responsible for the case is expected to resign in early September.<\/span><\/p>\n

On the other hand, the court fully realizes how explosive this issue is and might choose to postpone the final ruling further.\u00a0Even though Yoon said he was optimistic, his government has precious little time to head off an unparalleled diplomatic disaster that could have lasting economic and geopolitical consequences for both sides and East Asia as a whole.<\/span><\/p>\n

Edited by Bryan Betts<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

South Korea and Japan narrowly avoided a much-feared disaster in bilateral relations last week. But that does not mean it can\u2019t still occur. On Friday, South Korea\u2019s 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 […]<\/p>\n","protected":false},"author":3665,"featured_media":2198463,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,25,28],"class_list":["post-2198462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-culture-society","tag-inter-korean-foreign-relations"],"yoast_head":"\nSeoul avoids diplomatic disaster in forced labor dispute with Japan \u2014 for now - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2022\/08\/seoul-avoids-diplomatic-disaster-in-forced-labor-dispute-with-japan-for-now\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Seoul avoids diplomatic disaster in forced labor dispute with Japan \u2014 for now - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea and Japan narrowly avoided a much-feared disaster in bilateral relations last week. 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