Korea and Japan normalized their diplomatic ties with the Treaty on Basic Relations between the Republic of Korea and Japan. The treaty earned Korea much needed funds to push its economic development plan and Japan a new market for its booming manufacturing sector. However, the Korean people were extremely unhappy with the treaty, which essentially bought Japan absolution for its colonial atrocities with 600 million dollars. Although the Korean government forged ahead with the treaty and restored bilateral ties, the treaty did not help resolve the historical issues at all and still remain a sticking point hampering the two countries form a genuine friendship.
