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The Blue House

Japan’s proposal to set up a third-party arbitration board on the issue of compensation to survivors of forced labor mobilization during Japan’s colonial occupation of Korea is not acceptable, the Blue House said.

Two days before the July 18 deadline for a response on the third-party arbitration board plan proposed by Japan, a key Blue House official said on July 16 that there would be “no particular response” by July 18.

“We cannot accept [Japan’s proposal],” the official said.

The same official added, “In the absence of any changes with the Japanese government’s export controls, we cannot additionally consider methods of resolution that the victims do not agree to.”

The official also commented on remarks the day before from President Moon Jae-in, who said the South Korean administration had “suggested ideas to Japan for a harmonious diplomatic resolution,” adding that it had “never claimed that this was the only solution.”

“We can’t accept anything other than a plan that the victims agree to,” the official said.

“For example, the victims are fundamentally against something like a ‘2+1’ plan,” the official added. The “2+1” plan is a framework in which forced labor survivors who won a final legal victory receive compensation from a fund formed by South Korean and Japanese companies, while the South Korean compensates any remaining survivors.

The Blue House’s rejection announcement on July 16 came out of a process of correcting confusion after another Blue House official said earlier that Japan’s plan to set up a third-party arbitration board was under “careful consideration.” The Blue House said there had been no changes in its previous proposal of a “1+1” plan in which South Korean and Japanese companies jointly create a fund for compensation.

In response to a South Korean Supreme Court ruling in October 2018 ordering a Japanese company to provide compensation to victims of forced labor, the Japanese government issued a demand on May 20 for the establishment of an arbitration board based on the two sides’ 1965 Claims Settlement Agreement.

Article 3-2 of that agreement states that if a party requests the establishment of an arbitration board after deeming there to be problems with the agreement’s enforcement, both parties are to appoint committee members within 30 days. The committee’s establishment did not proceed after the South Korean government declined to appoint members. In response, Japan demanded the establishment of a third-party arbitration committee within 30 days in accordance with Article 3-3 of the agreement, while giving until July 18 for a response.

By Lee Wan, staff reporter

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