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Concerning Today's Two Rulings by the Supreme Court of the Republic of Korea

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Mitsubishi Heavy Industries, Ltd.

Mitsubishi Heavy Industries, Ltd. ("MHI") is the defendant in two suits for damages in the Republic of Korea filed by plaintiffs located in that country who alleged that they had worked for a predecessor of MHI during World War II.

    First of all, the Agreement on the Settlement of Problems concerning Property and Claims and on Economic Cooperation between Japan and the Republic of Korea concluded in June 1965 (the "Agreement") stipulates that issues concerning property, rights and interests of signatory countries and their nationals (including judicial persons) as well as concerning claims between the countries and their nationals are "settled completely and finally," and no contention shall be made related thereto.

    Moreover, the plaintiffs of the current cases in Korea previously filed two corresponding cases in Japan in December 1995 and March 1999, and the Supreme Court of Japan has already issued final and binding judgments to dismiss both such claims in November 2007 and November 2008, respectively.

    In spite of the foregoing, today, the Supreme Court of the Republic of Korea issued final and binding judgments to dismiss the final appeals of MHI and confirm existing Korean judgements which ordered MHI to pay compensation to plaintiffs with regard to lawsuits filed in the Republic of Korea in May 2000 and in October 2012. These rulings are deeply regrettable, as they violate the Agreement and are contrary to the view of the Japanese government and the final and binding judgements of the Supreme Court of Japan.

    Going forward, MHI will take appropriate measures while maintaining communication with the Japanese government about this issue.