S. KOREA TO SEIZE ASSETS OF JAPANESE FIRMS

[Anchor Lead]

South Korea completed the procedures to seize the assets of Japanese firms that have ignored the South Korean top court's rulings to compensate the Korean victims of Japan's wartime forced labor. The Japanese companies' seized assets can be liquidated and encashed starting today. Seoul's foreign ministry is reviewing various responses to Tokyo's warning to take a retaliatory move if South Korea encashes the seized assets.

[Pkg]

​Nippon Steel Corporation ignored the South Korean Supreme Court's ruling to compensate victims of Japan's wartime forced labor. In order to secure damages, the victims opted to sell some 80,000 shares of PNR, the Japanese steelmaker's joint venture with South Korea. The asset sale process consists of two stages: seizing the assets and liquidating them into cash. In June, the Pohang branch of the Daegu Court, as the first step of the procedures, decided to issue a public announcement to notify Nippon Steel of the stocks seizure. Under the public announcement, Nippon Steel is considered to have received the trial documents even if they didn't arrive. The seizure deadline expired at midnight Tuesday local time. This means that with the procedures completed, the seized assets can be liquidated and encashed starting today. The court will make a decision on whether to order a sale after appraising the value of the shares and listening to opinions from Nippon Steel. The process will likely take two months, as the court wants to take all necessary steps with discretion.

[Soundbite] SONG KI-HO(LAWYER, MEMBER OF KOREA BAR ASSOCIATION'S SPECIAL COMMITTEE FOR JAPANESE COLONIAL-ERA VICTIMS) : "It may be necessary to issue a public announcement about the application for sale order. It would be difficult to encash the seized assets within this year."

Previously, the Japanese government warned that it will take additional retaliatory action if Seoul begins encashing the seized assets. Representatives for the forced labor victims criticized Tokyo for making the threat, highlighting retaliation against lawful decisions is illegal and irrational. The Foreign Ministry is closely monitoring the situation and reviewing all possible options.