Case No. 2023 (Wa) 575, Claim for Damages

In 2023, surviving South Korean victims of forced labor during World War II, represented by Kim Sung-ju and Lee Ok-seon, filed a damages lawsuit (Case No. 2023 (Wa) 575) against Nippon Steel Corporation at the Tokyo District Court. The plaintiffs sought compensation for unpaid wages and inhumane treatment suffered at the company's predecessor facilities. In 2025, the court delivered its judgment, focusing on whether the 1965 Agreement on the Settlement of Problems concerning Property and Claims between Japan and the Republic of Korea extinguished individual victims' rights to claim compensation. This case became a focal point in the ongoing legal and diplomatic friction between the two nations over historical reconciliation.

The Tokyo District Court dismissed the plaintiffs' claims, ruling that all compensation issues regarding wartime forced labor were fully and finally settled by the 1965 bilateral agreement, thereby barring any subsequent individual litigation. The court upheld the legal interpretation that the agreement extinguished the right to demand reparation through Japanese judicial processes.

The central dispute was whether the 1965 Japan-South Korea Claims Settlement Agreement conclusively waived the individual rights of forced labor victims to seek damages against Japanese corporations, or whether such rights survived under international human rights law and national tort principles.

The ruling intensified tensions in Japan-South Korea relations, drawing criticism from South Korean civic groups and the government, who argued it disregarded human rights. It fueled public demonstrations and placed diplomatic pressure on both governments to negotiate a supplementary fund or alternative compensation mechanism. Conversely, the Japanese government maintained its stance that all historical claims were resolved, reinforcing a legal position that has been a persistent source of bilateral friction.