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SEOUL: South Korea announced plans Monday to compensate victims of Japan’s forced wartime labour, aiming to end a “vicious cycle” in the Asian powers’ relations and boost ties to counter the nuclear-armed North.

Japan and the United States immediately welcomed the announcement, but victims have criticised the proposal because it falls far short of their demand for a full apology from Tokyo and direct compensation from the Japanese companies involved.

Seoul and Tokyo have already ramped up security cooperation in the face of growing threats from Kim Jong Un’s regime, but bilateral ties have long been strained over Tokyo’s brutal 1910-45 colonial rule of the Korean peninsula.

Around 780,000 Koreans were conscripted into forced labour by Japan during the 35-year occupation, according to data from Seoul, not including women forced into sexual slavery by Japanese troops.

Seoul’s plan is to take money from major South Korean companies that benefited from a 1965 reparations deal with Tokyo and use it to compensate victims, Foreign Minister Park Jin said.

The hope is that Japan will “positively respond to our major decision today with Japanese companies’ voluntary contributions and a comprehensive apology,” he added.

“I believe that the vicious circle should be broken for the sake of the people at the national interest level,” Park added.”

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