What Happened: South Korea's ruling Democratic Party is reportedly considering a plan to fulfill demands for compensation by wartime laborers that includes the allocation of government funds for future claims and the creation of a joint South Korean-Japanese fund to pay out claims awarded since 2018, Reuters reported July 10.
Why It Matters: If confirmed, the news would suggest a softened stance by South Korea in its ongoing dispute with Japan and a potential willingness to make concessions, although such measures would likely face strong domestic opposition.
Background: On July 4, Japan removed expedited processing for three chemical exports to South Korea that are critical to the country's semiconductor and smartphone industries. As a result, South Korean companies could experience export delays of up to three months.
Read More:
