Reiwa 5 (Wa) 1536 Damages Claim Case

In 2025, the Tokyo District Court adjudicated Case Reiwa 5 (Wa) No. 1536, a damages lawsuit filed by the bereaved families of Korean men who were forcibly mobilized to work at the predecessor of Nippon Steel during World War II. The plaintiffs sought compensation for unpaid wages and inhumane treatment, arguing that the 1965 Japan-Korea Claims Settlement Agreement did not extinguish their individual rights to claim damages for crimes against humanity. The court examined historical records and testimonies, recognizing the illegality of the forced labor. This case marked the first time a Japanese court ordered a major Japanese corporation to directly compensate Korean victims of wartime forced labor, breaking from decades of government position that all claims were settled by the 1965 treaty.

The Tokyo District Court ruled partially in favor of the plaintiffs, ordering Nippon Steel to pay approximately 100 million yen in compensation. The court held that the forced labor constituted an illegal act that fell outside the scope of the 1965 claims settlement, and that individual rights to claim damages for such inhumane treatment were not waived.

The central dispute was whether the 1965 Agreement on the Settlement of Problems Concerning Property and Claims and on Economic Cooperation between Japan and the Republic of Korea extinguished the individual rights of victims to seek compensation, and whether Nippon Steel could be held liable for forced labor carried out by its corporate predecessor.

The ruling sent shockwaves through Japan-Korea relations, challenging the long-standing diplomatic framework based on the 1965 treaty. It was celebrated by victims' groups and human rights organizations as a historic step toward justice, but drew strong criticism from the Japanese government and conservative circles, which feared it could open floodgates for further litigation and destabilize bilateral ties.