Korean companies cautious about compensating victims of Japan's forced labor

• Published date: 06 March 2023
• Publication title: The Korea Times

Korean companies, which benefited from a 1965 treaty with Japan that normalized diplomatic ties in exchange for economic aid, appear to be cautious about compensating victims of Japan's wartime forced labor, according to industry officials, Monday. The hesitation follows the Korean government's announcement that businesses here will take part in the reparations.

Under the Yoon Suk Yeol administration's scheme, a foundation for victims of forced mobilization, affiliated with the interior ministry, will collect "voluntary" donations from the private sector.

The government is expected to seek donations from 16 Korean companies, including the country's leading steelmaker POSCO, under which Tokyo offered $300 million in grants to Seoul at the time.

The list also includes KT, KT and G, KEPCO, Korea Expressway Corp. and KEB.

POSCO said it has yet to receive a request from the government, but added that it will actively review the request if it receives one.

"We will actively review the support plan according to the aim of the government's announcement," POSCO Group said.

Other companies involved are also contemplating how much they will allocate for the forced labor compensation fund.

"We are contemplating the compensation amount, but no concrete solution has been reached at this point in time," another industry official familiar with the matter said.

In addition, the Korean and Japanese...