Victims groups criticise compensation deal which aims to resolve a disagreement that has long frustrated ties between Seoul and Tokyo

South Korea said that its companies would compensate people forced to work under Japan’s 1910-1945 occupation of Korea, in a bid to improve poor relations that have impeded trade and cooperation between the two countries for generations.

The disagreements over labour and women forced into Japanese military brothels have bedevilled ties between the two pivotal US allies for years, but South Korean president Yoon Suk-yeol has made a push to repair the relationship.