Compensation
In January 2005, the South Korean government disclosed 1,200 pages of diplomatic documents that recorded the proceeding of the treaty. The documents, kept secret for 40 years, recorded that South Korea agreed to demand no further compensation, either at the government or individual level, after receiving $800 million in grants and soft loans from Japan as compensation for its 1910–45 colonial rule in the treaty.
The documents also recorded that the Korean government demanded a total of 364 million dollars in compensation for the 1.03 million Koreans conscripted into the workforce and the military during the colonial period, at a rate of 200 dollars per survivor, 1,650 dollars per death and 2,000 dollars per injured person. However, the South Korean government used most of the grants for economic development, failing to provide adequate compensation to victims by paying only 300,000 won per death in compensating victims of forced labor between 1975 and 1977. Instead, the government spent most of the money establishing social infrastructures, founding POSCO, building Gyeongbu Expressway and the Soyang Dam with the technology transfer from Japanese companies.
The documents also reveals that the South Korean government claimed that it would handle individual compensation to its citizens who suffered during Japan's colonial rule while rejecting Japan's proposal to directly compensate individual victims and receiving the whole amount of grants on the behalf of victims.
As the result, there have been growing calls for the government to compensate the victims since the disclosure of the documents. A survey conducted shortly after the disclosure showed that more than 70 percent of Korean people believe the South Korean government should bear responsibility to pay for those victims (ibid.). The South Korean government announced that it will establish a team to deal with the appeals for compensation, although "It has been the government's position that compensation for losses during the Japanese occupation has already been settled".
Japan has generally refused to pay damages to individuals, saying it settled the issue on a government-to-government basis under the 1965 agreement.
Read more about this topic: Treaty On Basic Relations Between Japan And The Republic Of Korea
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