South Korean President Moon Jae-in has called on Japan to accept the country's proposal for solving the issue of compensation to Korean plaintiffs in wartime labor cases through funds from companies of both countries.

It is the first time that the president, who was answering questions from major news agencies in writing, has elaborated on Seoul's recent proposal over the issue.

Bilateral ties have been strained since South Korean court rulings that ordered Japanese companies to compensate groups of Koreans who claimed they were forced to work in Japan during World War II.