Nippon Steel Corp. on Friday filed an appeal against the seizure of its assets in South Korea that were earmarked for liquidation to compensate wartime laborers, in a move sure to put the two nations on a diplomatic collision course yet again.

The Daegu District Court’s Pohang branch's decision on seizing the assets owned by the Japanese steel-maker, including around 81,000 shares it had acquired through its joint venture with the Korean firm Posco, went into effect Tuesday. The court decision would have been finalized, with the process moving on to the next step where the assets would be sold, if the Japanese firm hadn't filed an appeal within a week from Tuesday.

The court confirmed it would hear the complaint and will decide on whether to accept the appeal or not.