Japan and South Korea have a complicated history, particularly with regards to Japan’s colonization of Korea and forced labor during World War II. The issue of compensation for Korean forced laborers has been a source of tension between the two countries, with South Korea seeking reparations for the victims and Japan maintaining that all claims were settled through a 1965 treaty. However, recent developments suggest a potential breakthrough in the long-standing dispute.
On March 6, 2023, South Korea announced a plan to compensate laborers who were forced to work for Japanese companies during colonization in the first half of the 20th century. Under the plan, a South Korean government-backed foundation will compensate the victims without any involvement of Japanese companies [10]. This is a landmark move towards improving relations between the two countries, which have been strained for years over the issue of forced labor.
The plan follows a 2018 ruling by South Korea’s Supreme Court, which ordered Japanese companies Nippon Steel and Mitsubishi Heavy Industry to compensate 100 million Korean won ($77,000) to each of the 15 South Korean victims of forced labor during World War II [1]. However, none of the victims have yet been compensated [7].
The plaintiffs tried to liquidate the Japanese companies’ seized assets in South Korea to attain compensation, and decisions by South Korean courts in 2021 ordering their sale heightened tensions between the two countries [4]. The Japanese government has also been reluctant to intervene in this matter, as they do not want to be seen as endorsing any private compensation claims [1]
The compensation amount of $77,000 to each of the 15 South Korean victims ordered by South Korea’s Supreme Court in 2018 is considered by many to be inadequate for the harm caused. However, Japan has been refusing to compensate the victims in any way, despite repeated demands from South Korea and international pressure. Japan argues that all compensation claims were settled when the two countries normalized diplomatic relations in 1965, which included a lump sum payment to the South Korean government. They maintain that individual compensation claims by South Korean citizens should have been resolved at that time and that the matter should not be reopened. Moreover, Japanese officials contend that the matter was already settled in 2015 when the two countries agreed to a compensation fund for the victims, which the South Korean government disbanded in 2019, citing public opposition [1].
The compensation issue has been a major obstacle in improving relations between Japan and South Korea, with the two countries’ leaders holding talks in recent years to try to resolve the dispute. The issue has also impeded trade and investment between the two countries, and has caused a rift between them that has been difficult to mend [3].
Japanese Prime Minister Fumio Kishida has hailed South Korea’s plan for settling the wartime labor compensation dispute, pledging to accelerate efforts to improve bilateral relations that had frayed significantly over recent years due to the row [6]. He also expressed his country’s willingness to uphold its apology for wartime wrongs, including the forced labor issue.
The South Korean government’s proposal to compensate the victims through a public foundation rather than directly from Japanese companies is likely to provoke some domestic backlash from South Korean opposition parties and advocacy groups [10]. Some argue that it is a compromise that lets Japanese companies off the hook for their actions during the war [2].
Despite the potential for backlash, the agreement is a significant step forward in resolving the long-standing issue of compensation for forced labor during World War II. It remains to be seen whether it will lead to a lasting improvement in relations between Japan and South Korea, but the fact that the two countries have been able to reach an agreement on this issue is a positive sign.
A better relationship between South Korea and Japan could have several implications for China’s geopolitical interests. China has long been wary of Japan’s efforts to increase its military presence in the region and its territorial claims in the East China Sea. At the same time, China has had strained relations with South Korea over issues related to the deployment of the US THAAD missile defense system and historical disputes related to China’s occupation of the Korean peninsula.
In addition, a more positive relationship between South Korea and Japan could reduce the need for the United States to intervene in regional security issues. The United States has traditionally played a key role in maintaining security in East Asia, but a rapprochement between South Korea and Japan could shift some of the responsibility for regional security onto those countries themselves. This could free up American resources and attention for other global issues, such as competition with China or conflict in the Middle East.

Furthermore, a stronger alliance between South Korea and Japan could help to counterbalance China’s rising influence in the region. China has been expanding its military and economic power in East Asia, leading to concerns among neighboring countries about Beijing’s intentions. A united front between South Korea, Japan, and the United States could help to deter China from aggressive behavior, while also creating a more stable and predictable environment for economic and diplomatic cooperation in the region.
However, it should be noted that historical and territorial disputes between South Korea and Japan still exist, and these could continue to cause tensions in the future. In particular, the issue of Japan’s use of forced labor during World War II has been a major source of conflict between the two countries. While the recent compensation agreement represents a significant step forward, it remains to be seen whether it will fully resolve this longstanding issue. Additionally, Japan’s claims to the Dokdo/Takeshima islands, which are also claimed by South Korea, could continue to be a point of contention. Therefore, continued efforts to improve relations between South Korea and Japan will be necessary to fully realize the potential benefits of a stronger alliance.
on the other hand, improved relations between South Korea and Japan could help create opportunities for greater economic cooperation, which could benefit all three countries. For example, a trilateral free trade agreement between China, South Korea, and Japan has been under negotiation since 2012, and progress on this front could further strengthen economic ties between the countries.
In short, a better relationship between South Korea and Japan could have positive implications for regional stability, economic growth, and the balance of power in the region, potentially providing a counterweight to China’s growing influence.
[1] “In 2018, South Koreas Supreme Court ruled Japans Nippon Steel and Mitsubishi Heavy Industry should compensate 100 million Korean won ($77,000) to each of the 15 South Korean victims…”
URL: https://www.cnn.com/2023/03/06/asia/south-korea-japan-forced-labor-compensation-intl-hnk/index.html
[2] “SEOUL — South Korea on Monday said it will compensate laborers who were forced to work for Japanese companies during colonization in the first half of the 20th century, a landmark move toward…”
URL: https://www.washingtonpost.com/world/2023/03/06/south-korea-japan-forced-labor-compensation/
[3] “South Korea said that its companies would compensate people forced to work under Japans 1910-1945 occupation of Korea, in a bid to improve poor relations that have impeded trade and…”
URL: https://www.theguardian.com/world/2023/mar/06/biden-hails-groundbreaking-south-korean-plan-to-compensate-victims-of-japans-forced-labour
[4] “The plaintiffs moved to liquidate the Japanese companies seized assets in South Korea to attain compensation, and decisions by South Korean courts in 2021 ordering their sale heightened…”
URL: https://mainichi.jp/english/articles/20230306/p2g/00m/0in/012000c
[5] “In 2018, South Koreas Supreme Court ordered the Japanese companies to pay compensation to the plaintiffs. Seoul has been working on the plan in its effort to solve the issue before the…”
URL: https://www3.nhk.or.jp/nhkworld/en/news/20230306_15/
[6] “TOKYO Japanese Prime Minister Fumio Kishida on Monday hailed South Koreas plan for settling a wartime labor compensation dispute with Japan, pledging to accelerate efforts to improve bilateral relations that had frayed significantly over recent years due to the row.”
URL: https://japantoday.com/category/politics/update1-japan-to-uphold-apology-after-s.-korea-settles-wartime-labor-issue
[7] “Japan-South Korea relations at their lowest Relations plunged to their lowest point in decades after South Koreas Supreme Court in 2018 ordered Japanese firms to pay reparations to former forced labourers. Fifteen South Koreans have won such cases, but none have been compensated.”
URL: https://www.abc.net.au/news/2023-03-06/south-korea-forced-labour-japan-companies-compensation/102060228
[8] “Yonhap. The South Korean government formally proposed Monday compensating more than a dozen victims of Japans wartime forced labor through a Seoul-backed public foundation, instead of direct …”
URL: https://www.koreatimes.co.kr/www/nation/2023/03/281_346560.html
[9] “Jan 1, 2022 Total: 1,731,301 0 100,000 200,000 300,000 Tokyo 383,138 Osaka 203,860 Kanagawa 169,842 Saitama 116,102 Aichi 107,097 Chiba 100,690 Hyogo 78,911 Fukuoka 74,785 Hokkaido 61,459 Okinawa 50,611 Cases tallied by Kyodo News based on information provided by local authorities. South Korea announces solution to wartime labor row with Japan”
URL: https://english.kyodonews.net/news/2023/03/bc515daa7c64-japan-to-uphold-apology-after-s-korea-settles-wartime-labor-issue.html
[10] “Under the mutually agreed plan, a South Korean government-backed foundation will compensate the victims without any involvement of Japanese companies. While the solution constitutes a diplomatic breakthrough, it is set to provoke some domestic backlash from South Korean opposition parties and advocacy groups.”
URL: https://marketnews.com/japan-south-korea-reach-breakthrough-in-dispute-over-wartime-forced-labour
Current date: 3/6/2023
