U.S. President Joe Biden has hailed South Korea’s plan to provide compensation to Korean victims of Japan's wartime forced labor unveiled on Monday.

In a statement released after the announcement by Seoul and a response by Tokyo, Biden said the plan marks "a groundbreaking new chapter of cooperation and partnership between two of the United States’ closest allies."

He added that through two historic foreign ministerial statements, President Yoon Suk Yeol and Japanese Prime Minister Fumio Kishida are taking a critical step in building a future for their people that is “safer, more secure, and more prosperous.”

Biden said the U.S. will continue to support the leaders of South Korea and Japan “as they take steps to translate this new understanding into enduring progress.”

U.S. Secretary of State Antony Blinken also welcomed the announcements, calling them “historic.” He said South Korea and Japan are two of the United States’ most important allies, adding that Washington “is inspired by the work they have done to advance their bilateral relations.”