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The Supreme Court Decision on the Liability of Japanese Company for Forced Labor during the Japanese Colonial Era and Its Implications

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The Korean Supreme Court issued an en banc decision (“the Decision at Issue”) on the liability of a Japanese company for forcing the plaintiff into labor during World War II and a majority opinion affirmed the liability of the Japanese company. The main issue of the Decision at Issue was whether the Agreement on the Settlement of Problems concerning Property and Claims and on Economic Co-operation between Japan and ROK (“the Claims Agreement”) addressed the right to damages for mental harm caused by forced labor. This article analyzes the Decision at Issue from the perspective of international customary rules. Article 31 and 32 of the Vienna Convention on the Law of Treaties (“the Vienna Convention”) which stipulated rules concerning interpretation of treaties, have been considered to reflect international customary rules. As the Vienna Convention provided, a treaty should be interpreted in accordance with the ordinary meaning of the terms of the treaty in the light of its purpose and in their context together with subsequent practices. The Claims Agreement was for solving civil matter of property and obligation between the two countries rather than for addressing the matter arising from wrongdoing during Japanese colonial occupation. This succinctly explains why terms like “reparation” or “wrongdoing during the Japanese rule” are absent from the Claims Agreement unlike other treaties between Japan and other injured nations that were provided reparations. The Claims Agreement provided that the problems concerning the “claims” are settled completely. However, the Claims Agreement did not define “claim”. Claim can be construed as “diplomatic protection” based on the context, inferred by para. 2(h) of the Agreed Minutes, and subsequent practices on the side of Japan. The scope of the Claims Agreement, which was signed when Japan denied the illegality of its colonial rule over Korea, is inherently limited. This article also offers a rebuttal to the argument that the Claims Agreement is a lump sum agreement. In addition, this article submits the notion that Eight Items did not cover the plaintiffs’ rights on the grounds of provisions of the National Service Draft Ordinance and negotiation process for concluding the Claims Agreement. In sum, the legal logic of the Decision at Issue can be said to be acceptable and founded upon firm argumentation. The Decision at Issue has significant implications: constitutional value can play a pivotal role in interpretation of treaties and the interpretation of treaties should be made in deference to the fundamental ideology of protection of human rights.

Abstract

The Korean Supreme Court issued an en banc decision (“the Decision at Issue”) on the liability of a Japanese company for forcing the plaintiff into labor during World War II and a majority opinion affirmed the liability of the Japanese company. The main issue of the Decision at Issue was whether the Agreement on the Settlement of Problems concerning Property and Claims and on Economic Co-operation between Japan and ROK (“the Claims Agreement”) addressed the right to damages for mental harm caused by forced labor. This article analyzes the Decision at Issue from the perspective of international customary rules. Article 31 and 32 of the Vienna Convention on the Law of Treaties (“the Vienna Convention”) which stipulated rules concerning interpretation of treaties, have been considered to reflect international customary rules. As the Vienna Convention provided, a treaty should be interpreted in accordance with the ordinary meaning of the terms of the treaty in the light of its purpose and in their context together with subsequent practices. The Claims Agreement was for solving civil matter of property and obligation between the two countries rather than for addressing the matter arising from wrongdoing during Japanese colonial occupation. This succinctly explains why terms like “reparation” or “wrongdoing during the Japanese rule” are absent from the Claims Agreement unlike other treaties between Japan and other injured nations that were provided reparations. The Claims Agreement provided that the problems concerning the “claims” are settled completely. However, the Claims Agreement did not define “claim”. Claim can be construed as “diplomatic protection” based on the context, inferred by para. 2(h) of the Agreed Minutes, and subsequent practices on the side of Japan. The scope of the Claims Agreement, which was signed when Japan denied the illegality of its colonial rule over Korea, is inherently limited. This article also offers a rebuttal to the argument that the Claims Agreement is a lump sum agreement. In addition, this article submits the notion that Eight Items did not cover the plaintiffs’ rights on the grounds of provisions of the National Service Draft Ordinance and negotiation process for concluding the Claims Agreement. In sum, the legal logic of the Decision at Issue can be said to be acceptable and founded upon firm argumentation. The Decision at Issue has significant implications: constitutional value can play a pivotal role in interpretation of treaties and the interpretation of treaties should be made in deference to the fundamental ideology of protection of human rights.

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