‘Historic Announcements’: South Korea, Japan Inch Closer To End Dispute Over Wartime Forced Labour

South Korea has said its own companies, and not Japan, will raise funds to compensate labourers who were forced to work under Japan's occupation of Korea from 1910-1945. Tokyo has welcomed move.

South Korean President Yoon Suk-yeol (left) and Japanese Prime Minister Fumio Kishida

Japan and South Korea have taken a big step towards resolving a colonial-era dispute between them over wartime labour compensation and other pending bilateral issues, which have affected political and trade relations between the two neighbours for long. According to a Reuters report, South Korea said Monday its people who were forced to work under Japan's occupation of Korea from 1910-1945 will be compensated by its own companies. 

It was earlier reported that if Seoul secured compensation payments for Korean labourers on its own instead of asking Japanese companies to pay them, Japan would remove restrictions on certain tech exports to South Korea and also agree to resume reciprocal visits by the leaders of the two countries.

Under the plan announced by Foreign Minister Park Jin, South Korea would pay the compensation to former forced labourers through its existing public foundation that is funded by private-sector companies, the report said.

Japan Prime Minister Fumio Kishida has welcomed the proposal, and said he would work closely with South Korean President Yoon Suk-yeol, as quoted by Reuters.

The report, however, said the proposal faced backlash from some victims and South Korea's main opposition party, who said it favours Japan.

US Welcomes ‘Historic Announcements’

The Japan Times reported that Tokyo had earlier said it planned to make clear that it would stand by apologies made to its neighbours previously over past aggression if Seoul found a solution to the wartime labour issue. Prime Minister Fumio Kishida reiterated the stance during a meeting of the Upper House Budget Committee Monday morning, the report said.

The move paves way for President Yoon’s travel to Tokyo for a March-end summit with PM Kishida, and could also lead to an invitation to Yoon to attend the Group of Seven summit in Hiroshima in May, the report said.

Meanwhile, the US welcomed the "historic announcements" made by both countries. In a statement, Secretary of State Antony J. Blinken said the US was “inspired by the work” done by South Korea and Japan to improve their bilateral relations.

“We applaud President Yoon, Prime Minister Kishida, and their respective administrations for their courage and vision, and call on the international community to join our commendation of this momentous achievement,” he said.