DISAGREEING TO JAPAN'S PROPOSAL

[Anchor Lead]

Japan has proposed to the South Korean government to bring the issue of compensation for the Korean victims of wartime forced labor, before an arbitration committee. Tokyo asked Seoul to send its response by Thursday, but the Korean government said it's not for an arbitration committee to decide on the matter, and brushed away Tokyo's unilaterally set deadline.

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​June 19. Tokyo demanded that an arbitration committee be set up by a third country to solve the issue of compensation for the Korean victims of Japan's wartime forced labor under the Korea-Japan Claims Agreement. Tokyo gave Seoul 30 days to send its reply. The deadline was July 18. The Korean government rejected the proposal, and declined to respond within the given deadline. Seoul says Tokyo is making unilateral demands to set up an arbitration committee and respond to its proposal, when the two nations never agreed to begin procedures to solve the dispute.

[Soundbite] KIM IN-CHUL(SPOKESPERSON, MINISTRY OF FOREIGN AFFAIRS) : "The date was set unilaterally by Japan at its own discretion. I don't think we must abide by it."

The Korean government insists on its so-called "1+1 proposition" it made to Japan last month. Seoul wants a compensation fund to be raised jointly by Japanese corporations involved in the lawsuit and Korean businesses that have benefited from the Korea-Japan Claims Agreement. The Korean government is repeatedly urging Japan to negotiate the matter. Seoul believes Tokyo must first negotiate the issue, as it is refusing to hold talks. Korea added that a flexible solution might be found in the negotiating process. However, Seoul made it clear that it will not propose an amended solution before negotiations, and that even if amendments are made, they must be approved by the victims. It's unclear if Japan will agree to negotiate, as it keeps claiming that the issue of wartime forced labor has been already settled by the Korea-Japan Claims Agreement. The future of the two country's relations now depends on the outcome of the election of members of the House of Councillors slated for next week in Japan, and on whether or not Korea will be removed from Japan's whitelist.