South Korea offers plan to end wartime labor dispute with Japan Seoul drops WTO dispute process on export curbs; Tokyo announces talks on issue
SEOUL -- South Korea announced on Monday that it will compensate Korean laborers forced to work for Japanese companies during World War II, in an attempt to resolve one of the thorny historical issues that has plagued relations with Japan.
Foreign Minister Park Jin said a government foundation will compensate 15 victims who won legal cases against Mitsubishi Heavy Industries and Nippon Steel in 2018. The fund will be set up using donations from the private sector.
"The government hopes that both South Korea and Japan work together to develop future-oriented relations based on reconciliation and friendly cooperation, overcoming unfortunate history in the past," said Park in a briefing. "This solution matches the Republic of Korea's boosted state power and status. The government will not overlook this matter and [will] embrace our people's sufferings."
The neighbors, both U.S. allies, have been at loggerheads for decades over several issues stemming from Japan's 35-year occupation of the Korean Peninsula from 1910 to 1945. The two countries are also embroiled in a territorial dispute and have failed to resolve the issue of the so-called comfort women who worked in Japanese military brothels during the war.
Relations between the countries fell to their lowest point in decades in 2019 when Japan implemented restrictions on exports of key items to South Korea, citing a loss of trust and national security concerns. South Korea said that Japan's move was de facto retaliation for the 2018 court ruling on wartime labor compensation.
South Korea's trade ministry said later Monday it would suspend its World Trade Organisation dispute process on Japan's export control measures, while Japan's Ministry of Economy, Trade and Industry announced it would hold talks with South Korea on the issue.
The announcement comes less than a week after South Korean President Yoon Suk Yeol said that Japan had transformed from the militaristic aggressor of the past into a partner that shares the same universal values with South Korea.
Park asked the Japanese government and companies to respond with a comprehensive apology and voluntary contributions. He said that corporate leaders from the two countries are discussing how to contribute to the development of bilateral relations between Seoul and Tokyo.
However, the top South Korean diplomat faced tough questions from local journalists, including one inquiring as to whether the government yielded too much to Japan. Park denied this, responding with a metaphor positing that South Korea filled more than half of a cup, while Japan would fill the rest.
South Korean Foreign Minister Park Jin speaks at a briefing in Seoul on March 6. © Yonhap/Kyodo
Japanese Foreign Minister Yoshimasa Hayashi said that he "appreciates [the South Korean government's announcement], as it will help restore Japan-South Korea relations to a healthy state from a very difficult state."
Regarding South Korea's demand for a "sincere response," Hayashi stressed his government "has inherited the position of successive Japanese cabinets on historical recognition as a whole."
Although the Japanese government will not provide funds, he said Japan intends to maintain the stance expressed by previous administrations, without using any specific terms. Previous administrations have expressed "remorse and apology."
Hayashi appeared to agree to Japanese companies making voluntary donations, but said that Tokyo "does not take a particular position." He added that the issue of export controls "is a separate discussion" from the wartime labor issue.
Kim Jae-chun, a professor of international relations at Sogang University in Seoul, described the deal as "a mixed bag."
"On the positive side, the deal will work as a catalyst for two countries to patch things up and cooperate in a more proactive manner on issues related to North Korea... and many important issues in the Indo-Pacific region including economic security," Kim told Nikkei Asia.
Kim added that the deal will cause a "big stir" domestically in South Korea because it does not mandate payments by the Japanese companies to victims. "I am afraid that the deal could trigger a sizable political backlash in Korea in which case Korea-Japan relations could fall victim to domestic politics in Korea again," Kim added.
The labor issue hamstrung the previous administration of President Moon Jae-in as the progressive leader turned his foreign policy toward improving relations with North Korea. The Yoon administration is now prioritizing security and economic issues, such as strengthening ties with the U.S. and Japan.
Since taking office in May, Yoon has spoken at length about the need to boost tepid economic growth and improve relations with Washington, both factors that could be at work in Monday's announcement.
"Part of the motivation is economic, in that Yoon's government does want to move forward on resumption of normal trade [with Japan] for some of the high-tech items," Mason Richey, a professor of politics at Hankuk University of Foreign Studies in Seoul, told Nikkei Asia.
Protesters attend a rally in front of the Foreign Ministry in Seoul on March 6 held to denounce the South Korean government's position on the wartime labor compensation issue. © Kyodo
Yoon and his staff may also be attempting to implement a longer-term strategy, bearing in mind South Korea's political system, where presidents serve a single five-year term, and the country's top office tends to switch hands between conservatives and progressives every five or 10 years.
When a new administration takes over from the other side, it will often work to undo policies passed under its predecessor, as happened with another landmark Japan-South Korea agreement passed in 2015.
That deal, signed by conservative former President Park Geun-hye, established a foundation to address the comfort women issue. Progressives in South Korea criticized the deal for inadequately reflecting the wishes of the survivors themselves, and Park's replacement, left-leaning President Moon Jae-in, dissolved the foundation in 2018.
"The conservatives appear to be betting that even though this deal will be unpopular now, if they can get two administrations in a row, then the problem has a better chance of going away," Richey said.
"They are trying to institutionalize better relations with Japan, which have long been a priority for South Korea's conservatives, while hoping that they can score a victory in [the next presidential election] in 2027, and that this issue will be water under the bridge at that point and there won't be enough to be gained politically by dredging it up again," Richey said.
"In the long term it might not pay off, but Yoon's team seems to believe that the short-term benefits in trade and currying favor with the U.S. make it a worthwhile risk," Richey added.
In a statement, U.S. President Joe Biden said: Today's announcements between the Republic of Korea and Japan mark a groundbreaking new chapter of cooperation and partnership between two of the United States' closest allies.
"President Yoon and Prime Minister Kishida are taking a critical step to forge a future for the Korean and Japanese people that is safer, more secure, and more prosperous," he added. "When fully realized, their steps will help us to uphold and advance our shared vision for a free and open Indo-Pacific."
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