South Korea pushes to resolve historical labour dispute with Japan

SouthKoreasaid on Monday that its companies would compensate people forced to workunder Japan's1910-1945 occupation, seeking to end a dispute that has undercut U.S.-led efforts to present a unified front against China and NorthKorea.

The proposal was welcomed in Tokyo but faced immediate backlash from some victims andSouthKorea's main opposition party, who accused the government of capitulating to Japan.

U.S. President Joe Biden, whose administration has pressed its two allies to reconcile, hailed the announcement as "groundbreaking."

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 SouthKorean President Yoon Suk Yeol's push for reconciliation is the geopolitical threat from NorthKorea.

The disagreements over labour and women forced into Japanese military brothels have bedevilled ties between the two pivotal U.S. allies for years, but Yoonhas made a push to repair the relationship.

Under the plan,SouthKoreawould compensate former forced labourers through an existing public foundation funded by private-sector companies, Foreign Minister Park Jin told a briefing.

Desire to improverelations with Japan

"The souredSouthKorea-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."

Kishida said he welcomed the proposal and said he would work closely with Yoon.

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.

"We welcome this as a step that returns Japan-SouthKorearelations to a healthy one," he said.

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 NorthKorea's expanding missile and nuclear arsenal.

In a statement, Biden said the announcements were a "a groundbreaking new chapter of co-operation and partnership between two of the United States' closest allies" and a "critical step to forge a future for theKorean and Japanese people that is safer, more secure, and more prosperous."

Court orders Japan to pay reparations

Relations plunged to their lowest point in decades afterSouthKorea's Supreme Court in 2018 ordered Japanese firms to pay reparations to former forced labourers. FifteenSouthKoreans have won such cases, but none has been compensated.

Japan has said the compensation issue was settled under a 1965 treaty, and Hayashi said his government's stance had not changed.

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 bySouthKorean courts to pay reparations.

About a dozen protesters demonstrated outside as Park made the announcement.

"Today's humiliating resolution is a result of (theSouthKorean government's) consistently low posture towards the Japanese government," representatives of some of the victims said at a separate event.

Some of the 15 plaintiffs say they will reject the government's plan, setting the stage for more legal battles.

"It's not a proper apology," Yang Geum-deok, one of the victims, told reporters. "It should never be like this when there are people who actually did the wrong."

The main opposition Democratic Party denounced the plan as "submissive diplomacy."

"It's a day of shame," An Ho-young, a spokesperson for the party, said in a statement. "Japanese companies embroiled in war crimes received indulgence without even budging, and the Japanese government managed to remove a trouble by having the grace to repeat past statements."

TheSouthKorean companies include KT&G033780.KS,KoreaElectric Power Corp (KEPCO)015760.KSand other companies that benefited from a 1965 treaty betweenSouthKoreaand Japan.

Asked whether Japanese companies will pitch in to compensate, Park said both Japanese andSouthKorean businesses were considering a plan to make voluntary payments.