Japan-South Korea labor row muddles US plans on China

Tokyo weighs recalling ambassador if Nippon Steel asset sales proceed

20200803N Trump Abe Moon

From left, South Korean President Moon Jae-In, U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe at a Group of 20 leaders' summit. The rift between Tokyo and Seoul is a headache for Washington. © Reuters

SHOTARO MIYASAKA, Nikkei staff writer

TOKYO -- A South Korean court can start Tuesday the process of liquidating a Japanese company's assets it seized to compensate those forced work during colonial rule, escalating tensions between two nations that the U.S. counts on to help curb China's rise.

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