SEOUL - South Korean steelmaking giant Posco Holdings Inc. donated 4 billion won on Wednesday to a South Korean government-affiliated foundation, timed with Seoul's recent plan to resolve the largest thorn in Tokyo-Seoul relations.
The case against Japanese companies regarding former workers from the Korean Peninsula involved Nippon Steel Corp. and Mitsubishi Heavy Industries, Ltd. being ordered to pay damages to plaintiffs because of a ruling by the South Korean Supreme Court in 2018.
Under the plan formulated by the administration of South Korean President Yoon Suk Yeol and announced March 6th, the Foundation for Victims of Forced Mobilization by Imperial Japan will pay the equivalent compensation to the Japanese firms in lieu of the Japanese firms.
The Yonhap news agency said that this is the first donation by a South Korean company after the announcement of the government's plan. The plan proposes that the resources will be financed by donations with at least 15 other South Korean firms expected to make contributions.
Posco said it made the contribution voluntarily in line with the announcement made by the government.
Posco, founded in 1968 as the Pohang Iron and Steel Co., benefited from economic cooperation because of the Agreement on the Settlement of Problems Regarding Property and Claims and Economic Cooperation between Japan and the Republic of Korea in 1965.
In 2002 the company changed its name to Posco and pledged in 2012 to donate 10 billion won to the same foundation. 6 billion won of that pledge had been donated from 2016 to 2017 onwards.