SOUTH KOREAN President Yoon Suk Yeol has defended his government’s contentious plan to use local funds to compensate Koreans enslaved by Japanese companies before the end of World War II.

Mr Yoon said on Tuesday that it was crucial for Seoul to build future-oriented ties with its former colonial overlord.

President Yoon said the government wanted to “respect the positions of victims while also seeking ways that would align with the common interests and future development of both South Korea and Japan.