A man demands compensation for wartime forced labor victims from Japan during an open forum at the National Assembly in Seoul, Thursday. Newsis

Foreign ministry de facto gives up on Japan's compensation for forced labor victims

By Jung Min-ho

The Korean government has de facto given up on demanding compensation from the Japanese government and companies for Korean victims of wartime slave labor during Japan's 1910-45 colonial rule.

During an open forum on the issue at the National Assembly in Seoul, Thursday, a representative of the Ministry of Foreign Affairs said it is virtually impossible to achieve an ideal solution ― in which the Japanese companies offer compensation and sincere apologies for the victims ― and the ministry is now seeking a compromise.

The expected compromise will see Korean companies donate funds for the victims ― hoping that Japanese companies will join in. Almost certainly, however, there will be no apologies from Japan.

In 2018, the Supreme Court here ruled that Japanese companies, including Mitsubishi Heavy Industries and Nippon Steel, have to compensate 15 victims for wartime labor exploitation. The ruling led to Japan's retaliatory export controls on key items to Korea, and further strained bilateral relations, which President Yoon Suk Yeol has been trying to repair. Tokyo has maintained that the issue was settled as part of the two countries' 1965 treaty, under which it provided Seoul with $300 million in grants and $200 million in loans to pay for its occupation of the Korean Peninsula.

"With the persistent gap in opinion, it is difficult to make the Japanese companies pay compensation [voluntarily]," Seo Min-jung, a high-ranking official for Asia and Pacific affairs at the ministry, said. "We need a creative approach."

She said the ministry will consult with the victims and review their opinions before moving to the next phase.

If everything goes as planned, the Foundation for Victims of Forced Mobilization by Imperial Japan, which was established under the Ministry of the Interior and Safety in 2014, will be tasked with raising funds from domestic companies that benefited from the 1965 deal, such as POSCO, and possibly some Japanese ones. Shim Kyu-sun, head of the foundation, said the solution suggested by the government is the less satisfactory but more feasible option compared to the best one, which is beyond reach.

Shim also said lawmakers should review the need for a special law to compensate all victims, not just the 15 people, though did not offer a precise number. Former Assembly Speaker Moon Hee-sang, who previously suggested the idea, said approximately 1,500 victims should be subject to the law.

Lim Jae-sung, a legal representative for some victims, said any ideas that do not require the Japanese companies' participation are unacceptable.

"The idea offered by the government is basically using a Korean public institution to collect funds from Korean companies … There is no responsibility or burden for the Japanese side," he said. "[Expecting] donations from Japanese companies is just 'begging,' not a 'creative approach.'"

Opposition lawmakers and activists hold a press conference in front of the main building of the National Assembly in Seoul, Thursday.

Some politicians and activists refused to participate in the forum. Instead, they held a press conference near the building to criticize the government's proposal. Rep. Kim Sang-hee of the main opposition Democratic Party of Korea said it is "humiliating" to block the execution of the court verdict, which the victims fought for over many years.

It is possible that the victims will reject the government draft and ask the court to have the seized assets of the Japanese companies liquidated ― a "red line" Tokyo warned Seoul it will regret crossing.

If they are determined to proceed, the government may not be able to stop them, said Lee Won-duk, a professor of international relations at Kookmin University.

If that happens, the government may compensate the Japanese companies for the losses to prevent further deterioration of relations, he noted.