Page:Background and Position of the Government of Japan Concerning the Issue of Former Civilian Workers from the Korean Peninsula (FACT SHEET).pdf/2

 :: cooperative relationship that Japan and the Republic of Korea have developed since the normalization of diplomatic relations in 1965. Therefore, the Government of Japan conveyed its position that these judgments are extremely regrettable and totally unacceptable and has strongly demanded that the Republic of Korea take appropriate measures, including immediate actions to remedy such breaches of international law.


 * 1) However, the Government of the Republic of Korea failed to take any concrete measures. In addition, it was confirmed that the notice of approval for the application by the plaintiffs to attach the assets of the respondent Japanese companies was delivered. Therefore, the Government of Japan, reiterating that there is a dispute between Japan and the Republic of Korea concerning the interpretation and implementation of the Agreement within the scope of Article III, formally requested a diplomatic consultation on 9 January 2019.


 * 1) Since then, despite a series of requests from the Government of Japan, including the one on 12 February, the Government of the Republic of Korea failed to respond to diplomatic consultations for more than four months. Furthermore, the plaintiffs’ side announced that they filed an application for selling the seized assets of the Japanese companies when the steps of seizure have been and are being taken. Considering all such circumstances, the Government of Japan reached a conclusion that this dispute could not be settled through diplomatic channels. Accordingly, the Government of Japan, having regard to Article III.2 of the Agreement, transmitted a notification on 20 May 2019, referring the dispute to an arbitration board, which was to be constituted by Japan and the Republic of Korea, and initiated an arbitration process vis-à-vis the Republic of Korea.


 * 1) Pursuant to Article III.2 and III.3 of the Agreement, the Republic of Korea is under an obligation with regard to the constitution of an arbitration board to address the dispute. The first step in this process was for the Government of the Republic of Korea to appoint an arbitrator within a period of 30 days from the date of receipt of the note verbale of the Government of Japan. The Government of the Republic of Korea failed to do so. Moreover, the Government of the Republic of Korea did not implement the second step of its obligation to choose a third country, the government of which is to designate an arbitrator for the Contracting Party. Japan deeply regrets that, as the Republic of Korea failed to abide by the procedures under Article III of the Agreement, an arbitration board under the Agreement referred to on 20 May could not be constituted.


 * 1) On 19 June, the Government of the Republic of Korea announced its proposal indicating: (a) "it is desirable for the parties concerned to settle, by creating a source of funds through voluntary contributions from companies of Japan and the Republic of Korea, and supplying the corresponding amount of consolation money to the