Japan's Nippon Steel has appealed a South Korean court ruling ordering the sale of assets seized from the company to compensate South Korean plaintiffs seeking damages for wartime labor.

South Korea's Supreme Court ordered the company in 2018 to compensate South Koreans who claim they were forced to work for the firm in Japan during World War Two.

The company's shareholding in a joint venture with a South Korean steelmaker was later seized, and in 2021, a district court branch approved the sale of the held shares.

Nippon Steel immediately filed an appeal for the ruling, which was turned down in September this year.

On Monday, the company appealed the decision. The case is to be taken to South Korea's Supreme Court.

Another Japanese firm, Mitsubishi Heavy Industries, has also appealed a similar court order over the same issue.

The administration of South Korean President Yoon Suk-yeol, which shows its intention to improve ties with Japan, is seeking a resolution over the issue.

The South Korean government has reportedly shown a proposal in which an existing foundation in the country will pay compensation to the plaintiffs on behalf of the Japanese firms. The plan reportedly said the foundation would be funded by donations from South Korean firms.

But the plaintiffs are critical of the proposal, claiming that it reflects the Japanese government's demand.

The Japanese government says any right to claims was settled completely and finally in 1965, when Japan and South Korea normalized ties.

Nippon Steel says a series of South Korean court rulings goes against the 1965 agreement and a ruling by Japan's Supreme Court. The firm says if proceedings to sell the assets go ahead, they will be sold to a third party.

The company called the situation very regrettable and said it will continue to deal with the issue appropriately, taking into account government-level negotiations between the two countries.