Japan's Supreme Court has rejected pension claims by two Koreans for injuries they suffered while fighting in the Japanese imperial army.

Only one of the two ex-servicemen is still alive, but the case for the deceased veteran has been fought by relatives.

The South Korean nationals who have lived in Japan since the end of the war first took their claim to the Japanese courts ten years ago.

The surviving soldier lost an arm fighting for the Japanese in 1944 and the other, who died seven years ago, lost a leg.

The court rejected their demand for war pensions, which are paid to all Japanese veterans. The judge said compensation was settled when Japan re-established diplomatic relations with South Korea in 1965.

But he acknowledged that Korean veterans living in Japan were discriminated against and he said the government's position should be examined further.

The latest case comes amid escalating tensions between Tokyo and Seoul over Japan's refusal to withdraw a controversial school history book.