Tuesday, 18 February, 2020

Former Mitsubishi workers seek assets sale for forced labor

Former Mitsubishi workers seek assets sale for forced labor Former Mitsubishi workers seek assets sale for forced labor
Deanna Wagner | 18 July, 2019, 10:07

Its government plans to file a complaint with the World Trade Organization and raise the issue at next week's WTO General Council in Geneva. "In the end, it would be the Japanese economy that will suffer more", he added.

South Korean court rulings last autumn ordering Japanese firms, including Mitsubishi Heavy, to pay damages to victims of forced labor before and during World War II have sent bilateral ties to their lowest point in years.

Analysts say the Japanese measure won't have any immediate meaningful impact on South Korean chipmakers, which have sufficient supplies of the materials for now, given a slowdown in demand for semiconductors.

"Japan's latest actions including the export curbs would result in the severance of such value chains and consequently deliver negative impacts on the global economy".

Japan has denied that the dispute over compensation for laborers is behind the export curbs, even though a Japanese government minister this month cited broken trust with South Korea over the labor dispute in announcing the export restrictions.

In June, however, South Korea proposed that companies from both countries fund compensation for the plaintiffs, but Japan spurned the proposal for further dialogue on the matter in this direction. It would also allow Japanese authorities to restrict any export to South Korea when they believe there are security concerns, Park said.

Senior US diplomat meets S. Korean officials over Seoul-Tokyo trade row
But they are often embroiled in historical and territorial disputes stemming from Japan's 1910-45 colonial occupation of the Korean Peninsula.

For instance, when a South Korean customer purchases a Japanese television for one million won ($848), the OECD would exclude the display panel price when assessing Japan's TiVA in the given deal.

"We will continue our consumption and distribution boycott of Japanese products until the Japanese government and the Abe administration make an apology and withdraw its economic retaliations", stated Kim Sung-min, President of the Korea Mart Association. Other demonstrators held up signs that read, "Our supermarket does not sell Japanese products".

Vice Unification Minister Suh Ho will meet with a Japanese official during his three-day trip to Tokyo this week, a ministry official said Tuesday, amid escalating tensions between the two countries over Japan's export restrictions. Retailers have also reported modest drops in the sales of Japanese beer. Japan says it is not retaliation.

Japan says preferential export licensing arrangements for the three materials subject to its export control measure can only available to "trustworthy" trading partners.

South Korea says its export controls are working just fine.

Nevertheless, South Korea hit back on Tuesday with the chief of its National Intelligence Service (NIS) telling a parliament committee on intelligence that Japan was very "lukewarm and passive" in terms of implementing United Nations sanctions.