The governments of South Korea and Japan would have reached an agreement in principle to create a “fund for the future of youth” to finance university education within the framework of a pact for the compensation of forced labor imposed by Japanese imperialism during the time colony of the first half of the 20th century.

Sources cited by South Korean and Japanese media point to a “package” of measures that includes this fund, which will be controlled by the Federation of Korean Industries, the South Korean employers’ association, and the Japan Business Federation, its Japanese counterpart. The details will be announced on Monday by the South Korean Ministry of Foreign Affairs, according to the Yonhap news agency.

“There are many options for South Korea and Japan to set up a fund with the aim of moving towards the future, not the past,” a senior South Korean official was quoted as saying by Yohap.

The South Korean Supreme Court ordered Nippon Steel and Mitsubishi Heavy Industries in 2018 to pay compensation for victims of forced labor during the time of Japanese colonial rule over Korea, between 1910 and 1945. The two companies will contribute, albeit indirectly, to this new fund with contributions to Japanese employers or donations.

“There are contacts underway between the two employers and other sectors to specify how these contributions will be made to support the new generations of South Korea and Japan and open a new era in bilateral relations,” said the South Korean National Security adviser. Kim Sung Han.

The proposal does not satisfy the victims, but the two governments hope to be able to resolve this hindrance that has clouded bilateral relations between the two countries for decades.