Japanese Company: "Forced Labor Compensation Already Resolved... Will Not Pay Compensation"

On the 6th, Japanese companies sued for forced labor compensation during the Japanese colonial period reaffirmed that the issue of compensation was already resolved by the 1965 Korea-Japan Claims Agreement and expressed no intention to apologize or compensate.

One of the defendant companies, Nippon Steel, stated, "We are not in a position to comment," adding, "We recognize that this issue was resolved by the Korea-Japan Claims Agreement and have no plans to respond by apologizing, contributing funds to the Korean foundation (Foundation for Supporting Victims of Forced Mobilization under Japanese Rule), or meeting with the plaintiffs, their representatives, or supporters."

Mitsubishi Heavy Industries also reportedly responded, "Our position is that the issue of former workers from the Korean Peninsula (the Japanese term for forced laborers under Japanese rule) was completely and finally resolved by the Korea-Japan Claims Agreement." Regarding apologies to forced labor victims, they stated, "We have no intention of doing such a thing."

[Image source=Yonhap News]

The Japanese government has claimed that the forced labor compensation issue was completely resolved by the 1965 Korea-Japan Claims Agreement and that South Korean courts’ rulings ordering Japanese companies to pay compensation violate international law. They also argued that participation in the fund established under the South Korean Ministry of the Interior and Safety, which pays the judgment amounts to victims on behalf of Japanese companies, effectively constitutes compensation and is therefore unacceptable.

However, there are prospects that defendant companies may participate in the Future Youth Fund jointly established by Keidanren (Japan Business Federation) and the Federation of Korean Industries (FKI).

Masakazu Tokura, chairman of Keidanren, said, "This is a big step toward the normalization of Korea-Japan relations. Keidanren appreciates this," adding, "There were expectations within the business community to further strengthen Korea-Japan relations, and Keidanren will actively work to enhance economic exchanges between Korea and Japan."