Nippon Steel has appealed a South Korean court ruling to seize its assets in the country to compensate victims who were forced to labor in its factories during World War II.

The Daegu District Court said Friday that the Japanese firm submitted a complaint against the decision to seize some of its stake in PNR, a joint venture with Korean steelmaker POSCO, worth some 400 million won.

The move, expected to worsen tensions between the two countries, came days before the legal order was set to go into effect next Tuesday.

A South Korean Supreme Court ruling in late 2018 ordered Nippon Steel to pay four Koreans 100 million won each for forced labor and unpaid wages.

After the firm refused to comply, the plaintiffs requested asset seizure, which was approved by the Pohang branch of the district court.

The Japanese foreign ministry received the court decision last year but refused to deliver it to Nippon Steel, arguing the forced labor issue was already settled under a 1965 normalization treaty.

In June, the court began the two-month-long procedure of "Service by Public Notice" to proceed with the asset sale.

Japan has indicated that it would take retaliatory steps if the court decision is executed.

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