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Compensation for Colonial Past
In 1965, Japan signed a treaty with the government in Seoul recognizing it as the only lawful government in Korea. This left Pyongyang out in the cold as far as reparations were concerned. During the Cold War, North Korea insisted that Japan break off relations with Seoul and rejected the idea of "cross recognition" (i.e. the recognition of both Seoul and Pyongyang by the major states in the region), which it thought would help perpetuate the division of the peninsula. Furthermore, sanctions that Japan imposed on North Korea in response to its bombing of the South Korean cabinet delegation in Rangoon in 1983 and after the Korean Airlines downing incident in 1987 further strained relations.
The end of the Cold War changed Kim Il-sung's mind about pursuing relations with Japan, and in particular the June 4, 1990 meeting between Soviet President Gorbachev and his South Korean counterpart, Roh Taewoo. Their meeting led to the formal establishment of diplomatic relations on September 13 of that year, making it the first country to have relations with both Seoul and Pyongyang. With the precedent of cross-recognition already established, there was less reason to demand that Japan scrap its 1965 treaty with Seoul as a condition for setting up relations.
Treatment of Koreans by Japan
One of the most complicated aspects of the North Korean-Japanese relationship is the North Korean minority in Japan. Starting in 1910 when Japan annexed Korea, Koreans migrated to Japan in search of work. Often they had been pushed off their land by new Japanese landlords, and often were pressed into working in Japan to pay off debts. Conscription of Korean labors became particularly prevalent as Japan expanded militarily on to the Asian continent. During the later war years in particular, Koreans formed the bulk of the work force in many factories and mines in Japan. By some estimates between 10% and 20% of the victims of the Hiroshima and Nagasaki atomic bombs were Koreans. By the end of the war, there were approximately 2.3 million Koreans in Japan.
Under colonial rule, Koreans were made Japanese citizens. While they never enjoyed equal rights and were always the subject of discrimination, Koreans living in Japan were nevertheless allowed to vote in Japanese elections. However, as soon as the war ended, Koreans lost their Japanese citizenship. Most Koreans returned to their homeland during the first five post-war years, but the outbreak of the Korean War halted this, leaving almost a million Koreans in Japan clustered mainly in the major metropolitan areas. With the signing of the San Francisco Peace Treaty, Japan regained its independence and Koreans in Japan were forced to register as aliens. Still today, these Koreans and their descendants are forced to register their fingerprints with the government and carry identity cards with them at all times.
A further complicating factor occurred in 1965 with the signing of the South Korea-Japan Basic Treaty. All those Koreans in Japan who did not apply for South Korean citizenship became North Korean citizens by default. This was part of the reason that the original ratio of North Koreans to South Koreans in Japan was about 2:1, in spite of the fact that the vast majority of Koreans who came to Japan were from the far south of the country. Over the ensuing years, more and more North Koreans have switched to South Korean citizenship, and the ratio has reversed.
In spite of discrimination, many Koreans have become quite affluent. Largely excluded from many companies, the bulk of Koreans are self-employed or work in family businesses. Most pachinko parlors (pachinko is a pinball form of gambling) are owned by Koreans, and the industry generates a huge amount of revenue. This money is also one of the most important sources of hard currency for Kim Il-sung's government.
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