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With the Treaty, the agreements between Japan and Korea concerning the settlement of problems in regard to property and claims and economic cooperation was also signed. Japan provided South Korea with $300 million grant in economic aid and $200 million in loans together with $300 million in loans for private trust, a total of $800 million as "economic cooperation". By this Agreement, problems in regard to property and claims between Japan and Korea have been settled completely and finally.

In January 2005, the South Korean government disclosed 1,200 pages of diplomatic documents that recorded the proceeding of the treaty. The documents, kept secret for 40 years, recorded that the Japanese government actually proposed to the South Korean government to directly compensate individual victims but it was the South Korean government which insisted that it would handle individual compensation to its citizens and then received the whole amount of grants on behalf of the victims.

South Korea agreed to demand no further compensation, either at the government or individual level, after receiving $800 million in grants and soft loans from Japan as compensation for its 1910–45 colonial rule in the treaty.

However, the South Korean government used most of the grants for economic development, failing to provide adequate compensation to victims by paying only 300,000 won per death in compensating victims of forced labor between 1975 and 1977. Instead, the government spent most of the money establishing social infrastructures, founding POSCO, building Gyeongbu Expressway and the Soyang Damwith the technology transfer from Japanese companies. This investment was named Miracle on the Han River in