South Korea Announces Term Of War Dispute Solutions With Japan Monday Tomorrow

JAKARTA - The South Korean government plans to announce a solution to a wartime labor dispute with Japan on Monday (6/3). According to diplomatic sources, Sunday, a move that could pave the way for increased bilateral relations.

Launching Antara, Sunday, Seoul has considered paying compensation to former Korean workers through a government-backed South Korean foundation instead of asking Japanese companies to pay compensation as ordered by a South Korean court decision.

The latest developments come as relations between Tokyo and Seoul show signs of improvement after President Yoon Suk Yeol took office in South Korea in May last year with promises to take a future-oriented approach to Japan.

While South Korea is under the previous government of Moon Jae In, bilateral relations have fallen to their lowest point in years due to wartime labor and other issues largely from Japanese colonialism on the Korean Peninsula in 1910-1945.

The dispute over wartime labor got worse when South Korea's top court in 2018 ordered Japanese companies to pay compensation for forced labor.

The company has refused to comply with orders as Japan has stated that all issues originating from its occupation were resolved under a bilateral agreement signed in 1965.

If Seoul decides to ensure compensation payments to former Korean workers through a South Korean foundation, the Japanese government will allow Japanese companies to voluntarily donate to South Korean foundations, a previous diplomatic source said.

The Japanese government is also expected to express regret at former Korean workers, in line with previous government statements of Japan's aggression in Asia, and lift certain technology export restrictions to South Korea, sources said.