In a decision that could worsen already tense relations between Seoul and Tokyo, a South Korean court is expected to decide this week on whether to order that assets belonging to Nippon Steel Corp. be sold off to honor a 2018 Supreme Court judgment on wartime labor that ordered the Japanese firm to compensate four Koreans. Here’s a look at the background for the decision and its possible impact.
What is the Korean court expected to decide and why?
The Daegu District Court will rule on the sale of the assets, which include roughly 81,000 shares of Nippon Steel (which changed its name from Nippon Steel & Sumitomo Metal Corp. in April 2019) seized via its joint venture with Korean steel-maker Posco. The shares were seized by the court last year.