Korea's solution to forced labor issue draws backlash from victims

Foreign Minister Park Jin speaks during a briefing on an agreement with Japan over compensating forced labor victims at the ministry building in Seoul, Monday. Korea Times photo by Shim Hyun-chul

Tokyo says settlement will help 'restore healthy ties' with Seoul

By Lee Hyo-jin

The government on Monday announced an agreement with Japan to compensate victims of forced labor during World War II through a fund created by Korean companies, without the direct involvement of responsible Japanese firms.

But the resolution immediately provoked a fierce backlash from wartime victims and their families, who described the proposal as Seoul's "total defeat" to Tokyo following a diplomatic fracas between the two sides that dragged on for nearly five years. The Japanese government, on the other hand, welcomed the announcement, hoping that the deal will help restore healthy bilateral relations.

During a briefing, Foreign Minister Park Jin unveiled the resolution on compensating 15 Korean victims of forced labor who won three separate lawsuits against two Japanese firms ― Mitsubishi Heavy Industries and Nippon Steel ― in 2018. The Supreme Court here ordered the firms to compensate the plaintiffs who were forced to labor for Imperial Japan during its 1910-45 colonial occupation of Korea.

But both firms refused to comply with the ruling, leading to a diplomatic feud between the two nations which further impeded trade and military cooperation.

Under the resolution, the Korean government will compensate the victims through a public foundation created in 2014 under the Ministry of the Interior and Safety. Other plaintiffs, whose cases are pending in court, will also be eligible for the compensation once they win.

The necessary funds will be raised by local companies including POSCO that benefitted from a 1965 Korea-Japan treaty, under which Tokyo offered a package of $300 million (388 billion won) in economic aid and $500 million in loans in compensation for the colonial occupation.

The authorities explained that the settlement was based on in-depth discussions with 13 out of 15 victims, or their families, who were affected by the 2018 ruling.

In response to criticism that the ministry's plan ― without the participation of responsible Japanese firms ― is a half-baked resolution, Park said, "I do not agree with such views."

"Comparing it to a glass of water, I believe the glass is more than half full. And now we expect it to be filled further based on Japan's sincere response," he said, expressing hopes for Japanese companies to make voluntary contributions to the fund.

But the participation of Japanese firms remains elusive.

In January this year, the ministry initially proposed to launch a private foundation where Japanese firms can make voluntary donations to compensate the victims. But Japan refused to do so, as the move may be perceived as complying with the Korean court ruling.

Instead of making direct payments for wartime victims, the Japan Business Foundation, the country's business lobby group, plans to take part in a so-called "Future Youth Fund," co-funded by its Korean counterpart, the Federation of Korean Industries. Although details have yet to be announced, the money raised by the fund may be used for scholarships to Korean students.

Stressing that the resolution highlights Korea's willingness to advance bilateral relations in a future-oriented manner, Park called for a "sincere response" from Japan upholding the spirit of a 1998 joint declaration issued by then President Kim Dae-jung and then Prime Minister Keizo Obuchi.

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President Yoon Suk Yeol, who has been pushing to mend ties with Japan since taking office in May 2022, said the resolution underscores his administration's determination to build a future-oriented relationship with the neighboring country.

"In order for Korea-Japan relations to enter a new era, both governments should make efforts for the future generation to play a pivotal role," he was quoted as saying by presidential spokesperson Lee Do-woon.

Yang Geum-deok, 94, a surviving victim of Japan's forced labor during World War II, attends a press conference, Monday, in the southern city of Gwangju, Monday, Yonhap

'Biggest humiliation in diplomatic history'

While the settlement is expected to generate huge momentum in mending frozen diplomatic relations between the two countries, it has failed to gain the support of the victims and their supporters.

"It's a total defeat for Korea," commented Attorney Lim Jae-seong, the legal representative of several victims.

"In terms of diplomacy, it's a total win for the Japanese side, since its government has managed to free their firms from legal liability or responsibility," he said during an interview with CBS radio. He also pointed out that the tentative creation of a youth-related fund is totally irrelevant to compensating wartime victims.

Yang Geum-deok, 94, a surviving forced labor victim, refused to receive compensation in the way proposed by the government.

"This cannot be seen as an apology. A sincere apology should be made before anything else," she told reporters in Gwangju after watching the ministry's briefing.

The main opposition Democratic Party of Korea (DPK) also lashed out at the government's resolution and called it "the biggest humiliation in Korea's diplomatic history.

"The Yoon Suk Yeol administration seems to have ultimately chosen the path of betraying historical justice," said DPK Chairman Rep. Lee Jae-myung. "The humiliating resolution will never be accepted by the public."

Meanwhile, the Japanese government welcomed the settlement, expressing hopes to "restore healthy ties."

"The Japanese government values the measures announced by the Korean government and hopes that they will serve as a momentum to strengthen ties in the political, trade and cultural sectors," Japan's Foreign Minister Yoshimasa Hayashi said during a press briefing.

He also told reporters that the incumbent Japanese government inherits the historical perceptions of previous administrations, including the 1998 joint declaration. In the declaration, Obuchi expressed his deep remorse and apology for the "tremendous damage and suffering" to the Korea people during the colonial occupation.

But Hayashi did not give a direct response to a query on whether his government will allow Japanese firms to take part in fund and make donations to the Korean victims.

U.S. President Joe Biden also welcomed the arrangement, calling it a "groundbreaking new chapter of cooperation and partnership between two of the United States' closest allies."

Similar reactions also came from U.S. envoy to Korea Philip Goldberg, who said "the agreement to deal with a painful period in history advances trust and reconciliation between the two nations."