diff --git a/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/InnerClassConversion.kt b/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/InnerClassConversion.kt
index 8da66f5f44d..e3bc5e580ba 100644
--- a/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/InnerClassConversion.kt
+++ b/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/InnerClassConversion.kt
@@ -19,6 +19,7 @@ class InnerClassConversion : RecursiveApplicableConversionBase() {
 
     private fun applyArmed(element: JKTreeElement, outer: JKClass): JKTreeElement {
         if (element !is JKClass) return recurseArmed(element, outer)
+        if (element.isLocalClass()) return recurseArmed(element, outer)
 
         val static = element.extraModifiers.find { it == ExtraModifier.STATIC }
         if (static != null) {
diff --git a/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/JavaModifiersConversion.kt b/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/JavaModifiersConversion.kt
index bfbf0872b2e..d65ed870a7b 100644
--- a/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/JavaModifiersConversion.kt
+++ b/j2k/newSrc/org/jetbrains/kotlin/j2k/conversions/JavaModifiersConversion.kt
@@ -13,7 +13,11 @@ class JavaModifiersConversion(private val context: ConversionContext) : Recursiv
     override fun applyToElement(element: JKTreeElement): JKTreeElement {
         if (element is JKVisibilityOwner) {
             if (element.visibility == Visibility.PACKAGE_PRIVATE) {
-                element.visibility = Visibility.INTERNAL
+                if (element is JKClass && element.isLocalClass()) {
+                    element.visibility = Visibility.PUBLIC
+                } else {
+                    element.visibility = Visibility.INTERNAL
+                }
             }
         }
         if (element is JKExtraModifiersOwner && element is JKAnnotationListOwner) {
diff --git a/j2k/newSrc/org/jetbrains/kotlin/j2k/tree/jk.kt b/j2k/newSrc/org/jetbrains/kotlin/j2k/tree/jk.kt
index 381db5ebcb7..08438d16b71 100644
--- a/j2k/newSrc/org/jetbrains/kotlin/j2k/tree/jk.kt
+++ b/j2k/newSrc/org/jetbrains/kotlin/j2k/tree/jk.kt
@@ -63,6 +63,9 @@ interface JKClass : JKDeclaration, JKVisibilityOwner, JKExtraModifiersOwner, JKM
     }
 }
 
+fun JKClass.isLocalClass(): Boolean =
+    parent !is JKClassBody && parent !is JKFile
+
 val JKClass.declarationList: List<JKDeclaration>
     get() = classBody.declarations