Seoul: Two major South Korean business lobbies have made significant financial contributions to a public foundation tasked with compensating Korean victims of Japan's wartime forced labor.

According to Yonhap News Agency, the Korea Chamber of Commerce and Industry and the Federation of Korean Industries each donated 1.5 billion won, totaling 3 billion won (US$2.1 million), to the Japanese Forced Mobilization Victims Support Foundation. This foundation operates under the Ministry of the Interior and Safety.

The foundation was established in 2014 during the administration of former President Park Geun-hye. It was created to manage compensation payments following South Korea's Supreme Court rulings that held Japanese companies accountable for forced labor during World War II. During this period, many Koreans were compelled to work in Japanese mines and factories under Japan's colonial rule from 1910 to 1945.

Despite the court rulings, Japanese firms have not complied with the compensation orders. In response, the government under President Yoon Suk Yeol announced in March 2023 that it would independently compensate the victims, without requiring contributions from Japan. This decision has led to improved bilateral relations between the two countries.

President Yoon also encouraged voluntary donations from Japanese companies to the foundation; however, no contributions have been received from them. In contrast, South Korea's steel company POSCO has already donated 6 billion won to support the cause.

A Seoul official mentioned that the recent donations from the business lobbies are anticipated to provide stable funding for the compensation efforts.