[ANALYSIS] Why is AMCHAM donating to fund for Korean victims of Japan's forced labor?

The Korea Times

The Korea Times

National

Thu, December 7, 2023 | 22:49

Politics

ANALYSISWhy is AMCHAM donating to fund for Korean victims of Japan's forced labor?

Posted : 2023-03-12 16:18

Updated : 2023-03-13 11:09

President Yoon Suk Yeol, third from left, U.S. President Joe Biden, center, and Japanese Prime Minister Fumio Kishida, second from right, meet at a summit in Phnom Penh, Cambodia, Nov. 13. Yonhap

US seeks to play bigger role in improving Seoul-Tokyo ties

By Nam Hyun-woo

The United States is taking on a bigger role in improving frayed Seoul-Tokyo ties, with the American Chamber of Commerce in Korea (AMCHAM) becoming the first organization to express an intent to donate money to a South Korean public foundation that will raise funds to compensate the victims of wartime forced labor by Japan.

Experts see AMCHAM's move as an attempt by the U.S. government to help restore ties between the two neighboring countries. Strengthening trilateral cooperation is a prerequisite to combined deterrence against North Korea's nuclear threats and to curb China's rising influence.

The third-party compensation, which was agreed upon by Seoul and Tokyo earlier this month, has sparked a backlash from South Koreans due to Japan's lukewarm stance to issuing an apology for forcing Koreans to labor at its factories during World War II. Given this, the U.S. is facilitating an atmosphere to encourage more entities to chip in, in order to strengthen the trilateral relations between Seoul, Washington and Tokyo.

On March 8, AMCHAM, a lobby group for U.S. firms operating in Korea, said it will make a donation to the Foundation for Victims of Forced Mobilization by Imperial Japan, with its chairman James Kim saying, "The trilateral partnership between the U.S., Korea and Japan is key to the peace and prosperity of the region."

AMCHAM was the first organization to announce its intention to donate to the fund. The move came after the South Korean government announced, March 6, that domestic victims of Japan's forced labor during World War II will be compensated through the fund, without the direct involvement of responsible Japanese firms.

Both Korean and Japanese firms have yet to express their clear intention of participating in the fundraising.

South Korean firms that benefited from a 1965 treaty normalizing ties between Seoul and Tokyo are still contemplating whether to make donations to the fund. Japan claims that all reparations were settled under the treaty, which involved Japanese economic aid for South Korean firms including POSCO, KT&G and KEB Hana Bank.

Steelmaker POSCO said that it will "positively consider" making donations to the fund, while tobacco firm KT&G said it will "cooperate with the social agreement," and KEB Hana Bank said, it will "take a legal review of the case."

President Yoon Suk Yeol speaks with U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida during their summit in Madrid, Spain, June 29, 2022. Courtesy of presidential office

Against this backdrop, AMCHAM's participation is interpreted as the U.S.' intention to play a role in expediting efforts to get South Korea and Japan to mend frayed ties.

"Given the prompt response from AMCHAM, it is natural to assume that there has been a certain coordination between the U.S. government and the lobby group," said Choi Eun-mi, a research fellow at the Asan Institute for Policy Studies.

"The U.S. has been sticking to its stance that it is not the main stakeholder in South Korea-Japan relations, but has been showing interest in improvements in bilateral ties for the purpose of trilateral relations. Given this background, AMCHAM's move can be interpreted as setting up an atmosphere for more entities to join the fund."

The third-party compensation plan was a tough choice for South Korean President Yoon Suk Yeol, due to the negative stance among South Koreans over historical issues involving Japan. South Korea is hoping Japan will show a more sincere response, with Foreign Minister Park Jin saying, "The glass is more than half full with water and we expect that the glass will be further filled."

During an interview with Japan's Asahi Shimbun, South Korean Ambassador to Japan Yun Duk-min said Tokyo should make "follow-up measures that can heal the wounds of the victims and convince those who oppose the South Korean government's announcement (on the third-party compensation)."

If Japan demonstrates a more sincere response, it will be easier for Yoon to expedite his ongoing efforts to improve ties with Tokyo. In that case, U.S. concerns that frayed Seoul-Tokyo relations are the "weak link" in trilateral security cooperation, could be addressed, helping its efforts to contain China's assertion.

Yoon will visit Japan on Thursday for a summit with Japanese Prime Minister Fumio Kishida to seek further progress in bilateral relations.

Japanese economic daily, Nihon Keizai Shimbun, reported that the two leaders will hold a joint press conference after the summit, which will be the first joint press conference by the leaders of the two countries in 12 years. Also, Yoon is anticipated to attend a roundtable with business leaders of the two countries.

namhw@koreatimes.co.kr