Japan rejected an offer by South Korea to settle a wartime labor dispute through diplomatic channels Wednesday, saying the time for talks had already passed and it is now seeking to proceed with an arbitration process involving other countries.
Bilateral ties have been frayed following South Korean court decisions last year ordering Japanese firms to pay damages to victims of forced labor during Tokyo's 1910-1945 colonial rule of the Korean Peninsula.
South Korea said Wednesday it is willing to hold discussions with Japan on the condition that companies of the two countries chip in funds to compensate the victims.