Court dismisses RCC’s attempt to seize Chongryon properties
Written by Meenaa on Wednesday, November 19th, 2008
Court dismisses RCC’s attempt to seize Chongryon properties
The Yomiuri Shimbun
The Tokyo District Court has dismissed the Resolution and Collection Corporation’s demand for permission to seize properties used as the general headquarters of the General Association of Korean Residents in Japan (Chongryon), because the properties are registered as being owned by a separate entity.
The RCC had wanted to auction the properties in Chiyoda Ward, Tokyo, to cover the 62.7 billion yen loans extended to the pro-Pyongyang organization.
The RCC also filed a lawsuit demanding the ownership registration be changed from the entity to Chongryon, after it filed a lawsuit in July last year to seek permission for the seizure.
In November 2005, the RCC filed a lawsuit demanding Chongryon repay the loans, which the RCC bought from 16 bankrupt credit unions linked with Chongryon, claiming Chongryon had borrowed the money from the credit unions under the names of supporters.
In response, the Tokyo District Court in June last year ordered Chongryon to return the full amount to the RCC.
Based on the ruling, the RCC attempted to seize the headquarters and land, but could not do so because the properties are officially registered as being owned by a limited partnership entity, Chosen Chuokaikan Kanrikai, set up to manage the Chongryon headquarters building.
The RCC thus filed a suit to obtain the court’s permission for compulsory seizure of the properties.
During court deliberations, the RCC claimed the properties were substantially owned by Chongryon, saying the entity was registered as the nominal owner because Chongryon lacked the corporate status required for official registration.
However, presiding Judge Tsutomu Yamazaki said in Monday’s ruling that the court could not allow the RCC to seize the properties to collect the loans, even if the buildings were, in effect, owned by Chongryon.
“[Giving permission to the RCC] is against the spirit of the property registration system, which precisely reflects property ownership and any changes,” Yamazaki said.
Former Public Security Intelligence Agency Director General Shigetake Ogata is on trial on suspicion of swindling the properties from Chongryon to protect them from seizure.
An RCC spokesman said: “We’re unhappy with the ruling because our claims weren’t accepted. We plan to appeal.”
A Chongryon spokesman said: “The ruling is what we expected. The RCC’s demand to seize properties from an entity with no debt to the RCC ignores reality and related laws.”
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Registration spotlighted
By Atsuko Kinoshita / Yomiuri Shimbun Staff Writer
Chongryon cannot legally register itself as a real estate owner because it has no juridical personality–in other words, it is not officially registered for legal recognition and protection.
In similar cases, a representative of an organization without juridical personality usually registers as the real estate owner.
However, in the Chongryon case, the organization’s headquarters building and land were registered in the name of a separate entity.
Monday’s ruling concluded that the properties were registered under the name of this entity, and as such, could not be seized.
However, the RCC also is contesting the ownership of the properties in a separate lawsuit, in which it is demanding that ownership registration be switched to Chongryon. If enough evidence related to properties held by the entity and how they were acquired are presented, and it is shown that Chongryon is the true owner, the RCC may be permitted to seize the properties.
(Nov. 19, 2008)
