Abe expresses “dismay” at forced labor victims attempt to seize Japanese company assets

TOKYO, Jan 7, 2019, Hankyoreh. Japanese Prime Minister Shinzo Abe responded with “serious dismay” to survivors of colonial-era forced labor conscription initiating compulsory execution procedures for the seizure of South Korean assets from the Japanese company Nippon Steel and Sumitomo Metal, reported the Hankyoreh.

Abe also said he had “directed the relevant agencies to examine concrete [response] measures.”
In a Jan. 6 appearance on the NHK program “Sunday Discussion,” Abe said, “This seizure attempt [by attorneys] in connection with workers from the Korean Peninsula [forced mobilization survivors] is extremely dismaying.”

“The [Japanese] government is taking this seriously. This matter was fully and conclusively resolved with the [1965] Claims Settlement Agreement between Japan and South Korea,” he declared.

Abe went on to comment on South Korean Supreme Court rulings in late 2018 ordering Japanese companies including Nippon Steel and Mitsubishi Heavy Industries to pay compensation to South Korean conscription victims.

“In terms of international law, I see this ruling as unacceptable. I have ordered the relevant ministries to take concrete measures toward resolute action based on international law,” he said.
The “concrete measures” mentioned by Abe appeared to be a reference to arbitration according to “dispute settlement procedures” as agreed upon in the 1965 Claims Settlement Agreement. According to that document, any dispute that arises between the two sides in connection with the agreement should be “settled primarily through diplomatic channels” (Article III-1); if no resolution can be achieved, an arbitral commission is to be established with “one [arbitrator] to be appointed by the Government of each High Contracting Party [. . .] and the third [. . .] to be nominated by the Government of a third power as agreed upon by the two arbitrators” (Article III-2).

If the seizure measures requested by the survivors are actually implemented, the Japanese government reportedly plans to demand inter-governmental discussions, with a position demanding the formation of an arbitral commission to be submitted to Seoul if Japanese companies suffer any losses from the disposal of seized assets.

Japan can’t go to ICJ without South Korea’s consent

Japan has also been pressuring South Korea with the threat of an International Court of Justice (ICJ) complaint. On Jan. 5, the Mainichi Shimbun newspaper reported that Tokyo planned to “request establishment of an arbitral commission if [the issue] cannot be resolved through intergovernmental discussions” and was “also considering an ICJ complaint.”

But neither the arbitral commission nor an ICJ suit can proceed without the South Korean government’s consent. To begin with, the exchange of notes on dispute settlement agreed upon in conjunction with the Claims Settlement Agreement states that the two sides are to attempt resolution through mediation according to procedures agreed upon by both sides. Even an attempt by Tokyo to file suit with the ICJ would require South Korea’s consent.

The South Korean government, for its part, has indicated it does not plan to agree to the demands. With the Japanese government aware of this fact, its use of pressure tactics against Seoul is being seen as a calculated move to stir up domestic opinion and encourage a favorable opinion climate for Japan internationally. Seoul currently plans to pursue diplomatic discussions with Japan in connection with the survivors’ seizure measures.

“If Japan requests inter-governmental discussions, we will response after first giving the related details a full examination,” a Ministry of Foreign Affairs official said.

Civic groups in South Korea and Japan have suggested a possible solution in which the four major parties – the South Korean and Japanese governments; Japanese businesses such as Nippon Steel that face compensation obligations following the Supreme Ruling; and South Korean companies such as POSCO created with seed money from the South Korea-Japan settlement payment – come together to establish a foundation to heal suffering in connection with forced mobilization.

But as the Abe administration is unlikely to pursue a good-faith diplomatic response, the two sides appear set to enter a long-running battle with no safety valve.

By Cho Ki-weon, Tokyo correspondent, and Park Min-hee, staff reporter