Government to Accelerate Improvement of Korea-Japan Relations Next Month, Including 'Compensation for Forced Labor During Japanese Occupation'

[Asia Economy Reporter Yoo In-ho] The government has begun reviewing various measures to resolve the issue of compensation for forced labor during the Japanese colonial period, the biggest issue in Korea-Japan relations.

The plan is to launch a public-private consultative body early next month to discuss the forced labor compensation issue, and then gather broad opinions from academia, businesses, and others before making a final decision.

According to diplomatic sources on the 29th, the Ministry of Foreign Affairs is forming a public-private consultative body to seek solutions for forced labor compensation by collecting opinions from the government, victims, and experts from academia.

However, the selection process for the consultative body members is somewhat delayed. Although there were expectations that the council could be launched as early as this month, the launch is now expected to take place next month.

A diplomatic source said, “There is great concern because representatives of the forced labor victims have expressed that they will not participate in the public-private consultative body.” It is known that they strongly oppose plans that do not include participation from Japanese wartime companies.

The government is accelerating efforts on the forced labor compensation issue because the liquidation (sale) of domestic assets of Japanese forced labor companies is approaching, making it the biggest pending issue in Korea-Japan relations. The Supreme Court’s final ruling on the liquidation of Japanese company assets in Korea is expected around August to September.

Japan is also reportedly strongly hoping to urgently resolve the liquidation issue. Without some measures to prevent forced liquidation, it will be difficult for Korea-Japan relations to genuinely get back on track.

In particular, since there are no political schedules after the House of Councillors election (July 10), Japan is highly likely to actively pursue improvements in Korea-Japan relations.

Accordingly, next month could be an important test for the two governments to find a breakthrough in bilateral relations.

Since the forced labor compensation issue has a long history, many solutions have already been proposed both inside and outside the government.

First, the Korean government is considering a 'subrogation payment' plan, where it pays compensation on behalf of Japanese companies and later claims reimbursement from the Japanese side.

Other proposals include the '1+1' plan, where compensation is paid to victims from a fund voluntarily contributed by companies from both Korea and Japan, and the so-called 'Moon Hee-sang plan' (1+1+α), where not only companies but also citizens participate in the fund formation.

It is expected that the ideas the government will review will not deviate fundamentally from these existing proposals.

The issue is whether Japan will be willing to change its stance to resolve the forced labor problem.

Japan claims that the Korean Supreme Court’s individual compensation rulings for forced labor victims violate international law and insists that Korea should fully resolve this issue.

However, if Japan takes no action and tries to settle the issue solely through unilateral actions by the Korean government, it is unlikely that the victims will accept it easily.

In particular, whether the defendant companies in forced labor cases will participate in contributing to the compensation fund is considered one of the key issues. Japan reportedly firmly rejects the participation of defendant companies, as it would imply recognition of the individual compensation rulings.

There have been talks that the two countries are coordinating a plan to create a fund of around 30 billion won to compensate about 300 victims, with the defendant companies not participating. However, the government is known to regard the participation of defendant companies as an issue that still requires review.

A Ministry of Foreign Affairs official said, “Nothing has been decided yet regarding forced labor,” and added, “We are seeking a reasonable solution that aligns with the mutual interests of Korea and Japan.”

In this context, along with seeking solutions through the public-private consultative body, there is also a possibility of communication at a high level, such as between foreign ministers, next month.

If the Korean and Japanese foreign ministers attend the G20 Foreign Ministers’ Meeting held in Bali, Indonesia, on July 7-8, some form of meeting is expected to take place.

However, it is known that the possibility of a formal bilateral meeting between the Korean and Japanese foreign ministers in Bali is low.

The first formal face-to-face meeting between the Korean and Japanese foreign ministers is more likely to occur during Foreign Minister Park Jin’s first visit to Japan, which is planned after the Japanese House of Councillors election.

A government official said, “As early as next week, we will launch the public-private consultative body chaired by the first vice minister of foreign affairs to hear opinions from forced labor victims, civic groups, and various sectors,” and added, “Once the Japanese House of Councillors election concludes next month, we plan to activate high-level channels between Korea and Japan to improve bilateral relations.”

This content was produced with the assistance of AI translation services.