Settlement Agreement In Korea
1. Japan and the Republic of Korea have forged close, friendly and cooperative relations on the basis of the Treaty on Fundamental Relations between Japan and the Republic of Korea and other relevant agreements concluded by the two countries during the normalization of their relations in 1965. The agreement on the resolution of real estate and debt issues and on economic cooperation between Japan and the Republic of Korea (the “agreement”), which is at the heart of these agreements, provides that Japan grants the Republic of Korea $300 million in grants and loans of up to $200 million (Article I) and that property issues are the rights and interests of both parties and their nationals (including including legal entities) Contracting parties and their nationals are “fully and definitively regulated” and no dispute is raised on this matter (Article II). The agreement has therefore so far formed the basis of bilateral relations. In his 1974 lecture with the Nobel Peace Prize laureate, Eisaku Sata explicitly mentioned the basic relations treaty between Japan and South Korea. He stressed that the essential aspects of the expanded negotiations that highlighted the bilateral agreement were “the central idea of equality and mutual benefit and the realistic approach to friendship with close neighbours.”  (a) Japanese products and services of the Japanese population, which are free and whose total value in yen will be such that they will be equivalent to three hundred million dollars (300,000,000 USD), currently estimated at one hundred thousand billion yen (108,000,000,000) within ten years of the agreement coming into force. Deliveries of goods and services each year will be limited to as many yen as the 30 million dollars ($30,000,000) currently calculated at 10 billion yen ($10,800,000,000); if the one-year delivery is less than that amount, the balance is equal to the amount for subsequent and subsequent years. However, the maximum amount of one year can be increased by mutual agreement between the governments of the High Contracting Parties. 6. The Republic of Korea`s repeated failures to take the necessary steps to establish the arbitration body, that is, the dispute settlement procedure agreed under the agreement, constitute further violations of the agreement, in addition to violations already caused by the series of Judgments of the Supreme Court of Korea last year, as well as by related judgments and procedures. 8.
The settlement of this dispute obliges the Republic of Korea to remedy its accumulated violations of international law. Japan reiterates its call on the Republic of Korea to take concrete steps to this end without delay.