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Reuters
Reuters
Business
By Hyonhee Shin

South Korea hints at compensating ex-Japan labourers via fund; victims decry

The South Korean government unveiled a plan on Thursday to compensate victims of Japan's wartime forced labour through its own public foundation - instead of using funds from Japanese companies - prompting backlash from victims and their families.

South Korea's Supreme Court in 2018 ordered Japanese firms to pay reparations to former forced labourers. Although 15 South Koreans have won such cases, none has been compensated.

The plan Seoul's foreign ministry proposed at a public hearing would compensate them using a foundation funded by South Korean businesses that benefited from a 1965 treaty in which South Korea received a package of $300 million in economic aid and $500 million in loans from Japan.

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