Korean, Japanese business leaders to meet in Tokyo

Korean and Japanese business leaders are expected to meet in Tokyo later this week and possibly discuss creating a joint fund to help resolve the issue of compensation of victims of Japan's wartime forced labor.

Presidential spokesman Lee Do-woon speaks to reporters in a briefing at the Yongsan presidential office in central Seoul on Monday afternoon. [NEWS1]

Korean and Japanese business leaders are expected to meet in Tokyo later this week and possibly discuss creating a joint fund to help resolve the issue of compensation of victims of Japan's wartime forced labor.

The Federation of Korean Industries (FKI) and the Japan Business Federation (Keidanren) are coordinating plans to meet Friday, reported Japanese media Monday.

This comes as President Yoon Suk Yeol is scheduled to visit Japan for a summit with Japanese Prime Minister Fumio Kishida on Thursday to Friday, in what could contribute to a thaw in bilateral relations frayed by historical disputes and a trade spat in recent years.

Japanese broadcaster NHK reported that some 20 businesspeople from Korea, including members of the FKI and executives of large Korean companies, along with Keidanren head Masakazu Tokura and executives of Japanese companies, will take part in this meeting.

The two countries' main business lobbies are expected to discuss the creation of a joint fund to support future generations as a follow-up measure to a broader government effort to resolve the issue of compensation of forced labor victims.

In 2018, the Korean Supreme Court ordered two Japanese companies — Nippon Steel and Mitsubishi Heavy Industries — to individually compensate the victims of forced labor during World War II.

Tokyo maintains that all compensation issues related to Japan's 1910-45 colonial rule over Korea were resolved through the 1965 treaty normalizing relations, and the companies refused to comply.

On March 6, the Korean government announced its decision to compensate victims of Japan's wartime forced labor through a public foundation, funded by Korean companies and without set contributions from Japanese companies.

This led to the announcement of Yoon's first visit to Japan since taking office last Thursday, in what could be the resumption of shuttle diplomacy between the two countries' leaders for the first time in 12 years.

However, the Korean government proposal has faced backlash from some victims and civic groups because it doesn't involve direct compensation or an apology from the liable Japanese companies.

Japan might propose a so-called joint "future youth fund," possibly including contributions from Nippon Steel and Mitsubishi Heavy Industries, as a solution in lieu of direct compensation for the plaintiffs in the 2018 Supreme Court rulings.

Keidanren is referring to it as a "21st Century Korea-Japan partnership fund."

Tokura, who is also chairman of Sumitomo Chemical, visited Seoul in July 2022 to attend a Korea-Japan business meeting and met with President Yoon.

He welcomed the Korean government announcement of a Seoul-backed public fund last week, saying that "the business sector can positively review how it can contribute to improving bilateral relations."

Samsung Electronics Executive Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Executive Chair Euisun Chung and LG Group Chairman Koo Kwang-mo are expected to attend the business roundtable upon the invitation of the FKI, as they are not members of the federation, according to business sources Monday.

Other FKI members like Lotte Group Chairman Shin Dong-bin, Samyang Holdings Chairman Kim Yoon and Doosan Group Chairman Park Jeong-won are also expected to attend.

The FKI and Keidanren have held Korea-Japan business meetings since 1982 to deepen understanding and promote friendship between the two countries' business sectors.

Regarding reports of the creation of a joint fund for future generations, a senior presidential official told reporters Monday that "discussions are underway in that direction, and we look forward to results."

The official said regarding past historical issues with Japan, "We will leave the door to the past as it is and continue to make efforts to resolve problems, and we will also leave the door to the future open."

The official added, "Prime Minister Kishida clearly said that he inherits the historical awareness of the past, including the Kim-Obuchi joint declaration, and we look forward to confirming that once again in the upcoming summit."

In a joint declaration in 1998 with Korean President Kim Dae-jung, Japanese Prime Minister Keizo Obuchi expressed "deep remorse and heartfelt apology" for the "tremendous damage and suffering" caused to the Korean people through Japan's colonial rule.

"Each government agency should discover and promote cooperative projects in each field for future-oriented Korea-Japan relations," Yoon instructed Prime Minister Han Duck-soo at a meeting at the Yongsan presidential office Monday, according to presidential spokesman Lee Do-woon in a briefing later that day.

BY SARAH KIM [kim.sarah@joongang.co.kr]