South Korean court orders sale of seized Mitsubishi Heavy assets

SEOUL -- A South Korean court on Monday ordered Mitsubishi Heavy Industries' seized assets to be sold as compensation for women forced to work for the company during World War II, in a move expected to further chill relations between Japan and South Korea.

The Daejeon District Court ordered the liquidation of two patents and two trademarks from Mitsubishi Heavy, including the company logo used in South Korea, according to a support group for the plaintiffs.

This is the first time that a South Korean court has ordered the liquidation of Japanese corporate assets in connection to a wartime labor case.

The Daejeon court apparently aims to raise about 210 million won ($178,000) for each of the two plaintiffs, including making up for the delay in their compensation.

"We will make every effort as we tackle the remaining administrative processes to re-exert the victims' rights," the support group said.

Mitsubishi Heavy called the ruling "extremely regrettable," echoing Tokyo's stance that all wartime claims were settled "completely and finally" under a bilateral treaty when Japan and South Korea normalized ties in 1965.

"We will immediately appeal this decision, and plan to respond appropriately to the situation in communication with the government," the company said.

South Korea's Supreme Court ordered Mitsubishi Heavy to pay the women for their wartime labor in November 2018. The plaintiffs in July 2019 petitioned for two of the company's trademarks and six patents to be sold.

The Japanese government for years has urged the South Korean government to help resolve lawsuits regarding wartime labor. It considers the liquidation of seized corporate assets as a red line, though any attempts to block the sale will likely only drive a further wedge between Tokyo and Seoul.