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FKI, KCCI donate $2 million to victims of forced labor

Published: 14 Apr. 2025, 11:23

A pedestrian on Sept. 12, 2024, walks by a statue in Yongsan Station square, central Seoul, erected to remember victims of forced labor by Imperial Japan during WWII. [NEWS1]

Korea’s third-party compensation fund for victims of Japanese wartime forced labor received new financial backing from major business groups, reviving a policy launched under former President Yoon Suk Yeol.

While Yoon was removed from office, the recent donations offer renewed momentum to a plan aimed at resolving longstanding historical disputes between Korea and Japan through private entities.

The so-called third-party compensation fund refers to a plan kicked off in March 2023 by Yoon that would pay compensation owed by Japanese companies to victims of forced labor with money raised by the Foundation for Victims of Forced Mobilization by Imperial Japan (FOMO).

The foundation pays victims both compensation and delayed interest confirmed through court rulings.

A civic group holds a protest in Tokyo on April 11 demanding Mitsubishi Heavy Industries and Nippon Steel pay compensation to the victims of forced labor during WWII. [YONHAP]

First in two years

A 3 billion won ($2.1 million) payment was made to the FOMO this month, the first in two years since Posco, according to sources close to the matter.

On April 3, the Korea Chamber of Commerce and Industry donated 1.5 billion won, followed by an equal donation from the Federation of Korean Industries that arrived on April 4. These are the first institutional or corporate contributions to FOMO since Posco’s donations of 4 billion won in March 2023 and 2 billion won in September 2023.

The third-party compensation plan provides court-ordered damages and interest to victims through the foundation, using funds from Korean donors rather than from the Japanese companies that lost lawsuits. The plan has gained acceptance among some victims but has struggled with a lack of funding.

Last May, the foundation faced a funding shortfall of at least 12 billion won while available resources had dwindled to just 300 million won.

Citizens on Nov. 24, 2024, walk by a statue in Yongsan Station square, central Seoul, erected to remember victims of forced labor by Imperial Japan during WWII. [NEWS1]

Too long to go

With the latest contributions, the foundation’s liquid assets have increased to 3.6 billion won. However, it still needs at least 9.6 billion won to compensate all victims who have received final rulings against Japanese companies, meaning a further 6 billion won must be raised.

In December 2023 and January 2024, the Supreme Court ruled in favor of 52 additional victims. The foundation paid damages to eight surviving plaintiffs last December and plans to pay the remaining 44 in stages.

To expand its fund-raising capabilities, the foundation registered on Jan. 31 with the Ministry of the Interior and Safety to formally solicit public donations — a legal requirement for campaigns targeting large sums. With that step completed, broader outreach to private donors is expected.

Attention is also turning to Korean companies that benefited from postwar Japan–Korea claims settlements in 1965, such as KT, Korea Water Resources Corporation and KT&G.

A pedestrian on Nov. 24, 2024, walks by a statue in Yongsan Station square, central Seoul, erected to remember victims of forced labor by Imperial Japan during WWII. [NEWS1]

More victims like to come

Among the 15 victims who won the landmark Supreme Court rulings in October and November 2018, 14 have now accepted third-party compensation. The exception is the late Park Hae-ok, who passed away before receiving payment.

In a particularly symbolic case, the family of the late Jeong Chang-hee had been pursuing the seizure of Mitsubishi Heavy Industries’ Korean assets and recently won the first trial.

If upheld, it could have become the first instance of a Japanese firm’s assets being used to pay damages. However, the family ultimately chose to withdraw the case and accept the third-party payment.

Observers say the continued willingness of victims to accept the plan — despite its political and diplomatic sensitivity — has helped sustain the program through South Korea’s leadership transition.

The Sado Mine complex in Nigata Prefecture, Japan, on Nov. 24, 2024 [NEWS1]

Where is Japan?

Despite Korean participation, no Japanese firms have contributed to the fund.

With the change in administration, it remains unclear whether the plan will be maintained in the long term.

In a written interview with the Asahi Shimbun on March 17, Foreign Minister Cho Tae-yul called the third-party approach “virtually the only solution under the current circumstances.”

“If there were a sincere response from the Japanese side, the sustainability of this solution would likely be enhanced,” he said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY PARK HYUN-JU [[email protected]]