The government plans to hold a public debate next week on the issue of compensation for victims of Japan’s wartime forced labor as it seeks to resolve what has been the biggest obstacle in efforts to improve Seoul-Tokyo relations.

The foreign ministry announced on Wednesday that it will hold the debate in Seoul next Thursday, which it will co-host with the Korea-Japan Parliamentarians’ Union.

Given that the government has said that it has narrowed differences with Tokyo over multiple rounds of talks, Seoul is likely to reveal a concrete proposal addressing the contentious issue during the debate.

The foreign ministry has been reviewing the notion of raising funds from South Korean companies that benefited from the 1965 treaty normalizing bilateral ties as well as Japanese companies, and then donating the funds as compensation to victims via the Foundation for Victims of Forced Mobilization by Imperial Japan.

Tokyo's stance on the matter has remained private, with the foreign ministry in Seoul also remaining mum on the details of their negotiations.