Forced laborers` claims issue new fuse for strained Korea-Japan relations

Forced laborers` claims issue new fuse for strained Korea-Japan relations. November. 07, 2013 08:12. .

Keidanren, or the Japan Federation of Economic Organizations, and three other economic organizations in Japan issued a joint statement Wednesday, claiming that their liabilities for Korean victims of forced labor Japan`s colonial rule of Korea had been resolved by the 1965 South Korea-Japan basic treaty on their relations.

In the statement, signed by heads of the organizations, they claimed that the liabilities issue for the Korean forced labor victims were "completely and finally" settled by the 1965 treaty. They also said that the issue of compensation for Korean forced laborers would hinder Japanese companies` investment and businesses in South Korea and hurt the bilateral economic ties.

Referring to compensation lawsuits filed by former South Korean forced laborers against Japanese companies, the Japanese government argues that the 1965 Korea-Japan Claims Settlement Agreement resolved all claims issues. Japanese courts have also ruled against plaintiffs in such lawsuits. The latest statement by the Japanese business associations is also in line with the Japanese government`s and courts` perception of the issues.

In contrast, South Korea`s Supreme Court ruled in May that Japanese companies must pay compensation to Koreans whom they put into forced labor during the colonial era. High courts across the country also ruled in favor of the plaintiffs in damages lawsuits against Japanese companies. The South Korean courts view that the treaty between the two countries does not mean the lapse of the companies` compensation liabilities to individuals.

The Korea-Japan Claims Settlement Agreement includes the issue of forced labor, while other issues such as wartime sex slaves, Koreans in Sakhalin and nuclear bombing victims are not included. However, experts say that there is a new trend forming in the international community viewing that state compensation is separate from individual compensation. It is not easy to conclude which side`s claim is absolutely right.

However, it is a cause for concern that the Japanese business community`s statement mentioned the negative impact of the claims issue on investment and businesses. The two countries need to seek a compromise while refraining from driving the situation to an emotional conflict.