Forced Mobilization Resolution Public-Private Council Launches on the 4th, Prospects for Solution Expected

[Asia Economy Reporter Yoo In-ho] The public-private consultative body seeking a solution to the biggest issue in Korea-Japan relations, compensation for forced labor, will hold its first meeting on the 4th and begin discussions.

The Ministry of Foreign Affairs is known to hold the first meeting of the public-private consultative body, chaired by First Vice Foreign Minister Cho Hyun-dong, with government officials, experts, and representatives of the victims participating, in a closed session on the same day.

The government formed the public-private consultative body as the need to find a diplomatic solution has increased amid the imminent liquidation (sale) of Japanese companies' domestic assets.

The Korean Supreme Court issued final rulings in October and November 2018, ordering Nippon Steel and Mitsubishi Heavy Industries to compensate the victims of forced labor, respectively.

For the government, which is trying to improve the rapidly deteriorated Korea-Japan relations after the Supreme Court's compensation rulings, it is a situation where a solution must be prepared to avoid the liquidation procedure before it occurs.

However, it is expected to be difficult to derive a method that victims can accept and negotiate with Japan.

First, the Korean government is considering a ‘subrogation’ plan, where it pays the compensation on behalf of Japanese companies and later claims it from the Japanese side.

Plans such as the ‘1+1’ proposal, where compensation is paid to victims from a fund voluntarily created by Korean and Japanese companies, and the so-called ‘Moon Hee-sang plan’ (1+1+α), where not only companies from both countries but also the public participate in the fund, have also been suggested.

There are also reports that some are coordinating a plan to create a fund of around 30 billion won to compensate about 300 victims, and that a method excluding the participation of defendant companies is being considered.

The issue is whether the Japanese side’s corresponding measures and the participation or burden of the defendant Japanese companies can be drawn out in any form. Victims insist that it should not be a form that grants a ‘get-out-of-jail-free card’ to the defendant companies.