South Korean media are reporting that the government will soon formally announce a plan to settle a wartime labor compensation issue.

The government reportedly has decided to use a government-affiliated foundation to pay to plaintiffs in place of Japanese companies that have been ordered by South Korea's Supreme Court to pay damages.

South Korean President Yoon Suk-yeol has recently shown strong willingness to improve ties with Japan.

Officials from the South Korean and Japanese governments have been working on the plan that was unveiled in January.

South Korean Foreign Minister Park Jin met with the plaintiffs in late February to seek their understanding by explaining the plan.

South Korean foreign ministry officials noted on Saturday that when the consultations between the two countries' diplomatic officials are finished the outcome will be announced.