History continues to pose challenge to Korea-Japan ties

President Moon Jae-in speaks with Japanese Prime Minister Shinzo Abe at a hotel in New York on September 25. Yonhap

Seoul reviews request for discussion of forced labor ruling with Tokyo

By Kim Bo-eun

Dealing with history issues with Japan, yet seeking to develop bilateral relations has been the Moon Jae-in government's stance toward Tokyo.

Japan's 1910-1945 colonial rule of Korea and atrocities Tokyo committed during that time have posed difficulties in ties. Japan intended to conclude compensation for colonial era issues by a deal in 1965 when the countries formally established diplomatic relations. However, compensation under the deal was not defined as compensation for atrocities committed under Tokyo's occupation of Korea.

Forced labor ruling

In October last year, the Supreme Court ruled that Japanese steelmaker Nippon Steel and Sumitomo Metal (NSSM) must compensate plaintiffs who were victims of forced labor during the colonial rule. The ruling came 21 years since the plaintffs filed the first in Japan in 1997, and 14 years after they filed their case with a local court in 2005.

Japan's top court ruled in 2003 that the company did not have to compensate, based on the 1965 agreement. This has been the Japanese government's stance on the issue ever since.

The ruling by the Supreme Court, however, stated the 1965 deal did not eliminate individual rights to seek compensation.

The Japanese government is reported to have ordered NSSM not to follow the court ruling.

The legal counsel for the plaintiffs in the case called for the company to make compensation by Dec. 24. After it refused to comply, the counsel filed for a seizure order of the firm's assets in South Korea.

A court in Pohang approved the petition last week. The asset seizure applies to 81,075 shares worth 400 million won of PNR, a joint venture between NSSM and POSCO.

After the petition was approved, the Japanese government requested holding "diplomatic discussions" to resolve the issue. This was based on the 1965 deal, which states that conflicts that arise from interpreting it should be resolved through diplomatic channels. It is the first time for Japan to request such discussions on the matter.

The issue holds weight because it is not confined to NSSM. In December, the Supreme Court also ordered Mitsubishi Heavy Industries to compensate victims of forced labor. There are further implications for these rulings as there are estimated to be 100,000 to 200,000 victims.

South Korea is reviewing the request for talks, but it is unclear whether it will accept it. In 2011, Seoul made the same request of Tokyo, to discuss the issue of sex slavery, but the latter refused. If the issue cannot be resolved through diplomatic talks, the Japanese government may request for arbitration, based on the 1965 deal. If they agree to this, Seoul and Tokyo can each appoint one member of the arbitration committee, and appoint a third member they agree on.

The governments face a tough road ahead, with leaders speaking out on the issue.

Last week, Japanese Prime Minister Shinzo Abe expressed "deep regret" over the ruling, and said government bodies are reviewing "specific measures" to take with regard to the issue, based on international law.

The remarks were seen as Japan considering taking the case to the International Court of Justice. While this cannot happen unless the South Korean government agrees, it may be Japan's intention to raise the issue globally, to publicize the issue in its favor.

In his New Year press conference, Thursday, President Moon Jae-in said, "The issue was not created by the Korean government but due to a long, unfortunate history." He said the government as well as Japan should respect the ruling by the judiciary. Japan should refrain from making this a "political issue," he added.

Regarding Moon's remarks, Yoshihide Suga, Japan's Chief Cabinet Secretary, said "South Korea is trying to shift the responsibility onto Japan."

Sex slave deal

Meanwhile, the countries also remain in conflict over a sex slave agreement reached in December 2015. Seoul and Tokyo decided to end the conflict with the latter providing 10 billion yen in government funds for victims. The deal made under the Park Geun-hye administration faced an enormous backlash from South Koreans, because it was reached in a secretive manner without reflecting the voices of victims. Another factor that triggered opposition to the deal was that Japan was not required to acknowledge legal responsibility for sexually enslaving the victims of its military before and during World War II.

Amid controversy, the government set up the "Reconciliation and Healing Foundation" to hand out compensation to the victims. Some refused to accept the money, but in many cases relatives accepted it as many of the victims had passed away. This was completed by the end of 2017. However, due to prevailing negative public sentiment, the Moon administration drew up its own 10 billion yen fund, stating it would decide what to do with the money to best represent the wishes of victims.

Last November, the government announced it would disband the foundation, prompting Abe to denounce the move. The issue further complicates bilateral tension, at a time that calls for the countries' cooperation on North Korea's denuclearization.