The South Korean government said Monday it is preparing for retaliatory measures by Japan as a court order to liquidate assets of a Japanese firm involved in wartime forced labor is set to take effect. 

Seoul's Foreign Ministry said it is closely monitoring the situation and has been reviewing the direction of its response while being open to all scenarios. 

According to a legal team representing forced labor victims, the asset seizure order issued by the Pohang branch of the Daegu District Court in June will be considered delivered to Nippon Steel as of midnight Monday.

The court can then begin the procedure to liquidate seized assets to compensate the victims.

The Japanese government has warned several times it will retaliate and cited options such as a tariff hike, tighter visa issuance, financial sanctions, seizing Korean assets in Japan and summoning the South Korean ambassador.

Related ministries in Seoul including the presidential office are known to be reviewing a corresponding response to each possible scenario. The Foreign Ministry said it will continue to hold talks with Tokyo to discuss reasonable solutions in consideration of bilateral relations, the judiciary's ruling and victims rights. 

In 2018, Korea's Supreme Court ordered Nippon Steel to pay compensation to four South Koreans for forced labor and unpaid work during World War II.  After the firm refused, the plaintiffs requested an asset seizure which the Pohang court approved.