The Japanese government has reiterated opposition to the South Korean government's proposal urging companies from both countries to voluntarily create a joint fund to compensate Korean victims of Tokyo's forced wartime labor.

According to Kyodo News, Japan's Chief Cabinet Secretary Yoshihide Suga said at a news conference on Thursday that Seoul's proposal is "completely unacceptable."

He said the proposal cannot be a solution because it does not address rectifying Korea's violation of international laws.

Suga stressed that Tokyo is asking Seoul to set up an arbitration panel based on its view that all colonial-era reparation issues were settled under a 1965 bilateral agreement.

Speaking to reporters earlier, Japanese Foreign Minister Taro Kono said that his government told Korea that it cannot accept the proposal as Seoul continues to violate international laws by demanding compensation for forced wartime labor.