Japan on Monday called for the setting up of an arbitration board over compensation issues involving wartime Korean laborers, claiming South Korea has violated a 1965 bilateral pact that was designed to settle all such issues involving Japan's 1910-1945 colonial rule over the Korean Peninsula.

Japan made the request based on Article 3 of the pact, which stipulates a three-member arbitration board can be formed to solve disputes over interpretation and implementation of the pact. The two countries will be obliged to observe any judgment the board reaches. The members would consist of one from each of the two countries and another from a third country.

However, consent of the two countries is needed to convene such a powerful entity and Seoul can turn down Japan's request. If Seoul disagrees, Japan can take the case to the International Court of Justice in the Hague, Japanese Foreign Ministry officials have indicated.