The South Korean government is set to announce a plan as early as on Monday to settle a wartime labor compensation issue.
The plan is expected to have a government-affiliated foundation pay damages to plaintiffs in place of Japanese companies.
In 2018, South Korea's Supreme Court ordered Japanese companies to pay compensation to those who say they were forced to work during World War Two.
Seoul has been working on the plan in its effort to solve the issue before the companies' assets are liquidated.
South Korean President Yoon Suk-yeol has shown strong willingness to improve ties with Japan since he took office.
In a speech last Wednesday, he described Japan as a partner that shares the same universal values with South Korea. He also said the two nations cooperate on issues of security and economy as well as global challenges.
Yoon apparently aims to improve ties by presenting a plan to solve the biggest pending problem in bilateral relations.
But some of the plaintiffs say they won't accept payment from a government-affiliated foundation.
The Japanese government says any right to claims was settled completely and finally in 1965, when Japan and South Korea normalized ties.