South Korea says its own companies will pay to resolve forced labour dispute with Japan

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South Korea says its own companies will pay to resolve forced labour dispute with Japan
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South Korea said on Monday that its companies would compensate people forced to work under Japan's 1910-1945 occupation of Korea, in a bid to improve poor relations that have impeded trade and cooperation between the two countries.

"The soured South Korea-Japan relations should no longer be neglected, and we need to end the vicious cycle for the national interest, for the people," Park said. He said he hopes Japan responds sincerely, including by "implementing its previous public statements expressing remorse and apology."

Japanese companies will not be expected to make any payments under the plan, but would not be blocked from donating if they want, said Japan's Foreign Minister Yoshimasa Hayashi.Poor relations between the two have been a point of concern for the United States, which is seeking to present a more unified front with its allies against the rising power of China and threats from North Korea's expanding missile and nuclear arsenal.

A Japanese government source close to Prime Minister Fumio Kishida told reporters that the United States has been pressing both countries to reconcile, but that a main factor that triggered Yoon's push for reconciliation is the geopolitical threat from North Korea.Relations plunged to their lowest point in decades after South Korea's Supreme Court in 2018 ordered Japanese firms to pay reparations to former forced labourers.

When Seoul first raised its proposal in January, it sparked backlash from victims and their families because it did not include contributions from Japanese companies, including those ordered by South Korean courts to pay reparations."Today's humiliating resolution is a result of consistently low posture towards the Japanese government," representatives of some of the victims said at a separate event.

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