Uncertainty remains over contributions by Japanese war crime firms to 'partnership fund'

The Korea Times

The Korea Times

Business

Tue, September 26, 2023 | 05:45

Companies

Uncertainty remains over contributions by Japanese war crime firms to 'partnership fund'

Posted : 2023-05-10 16:54

Updated : 2023-05-11 08:27

Federation of Korean Industries (FKI) acting Chairman Kim Byung-joon, left, speaks during a press conference at the Japan Business Federation (Keidanren) headquarters in Tokyo, Wednesday, as Keidanren Chairman Masakazu Tokura listens. Courtesy of FKI

FKI leaves door open for participation of 4 major Korean conglomerates

By Park Jae-hyuk

The Federation of Korean Industries (FKI) and the Japan Business Federation (Keidanren) declined once again, Wednesday, to clarify whether Japanese firms accused of wartime forced labor will contribute to the Future Partnership Fund, established to support various cooperation projects.

The business lobby groups have also remained uncertain as to whether Korea's four largest business groups will participate in the funding, which was proposed in March by the two lobbies. The fund is a separate one from a foundation to be set up by the Korean government to compensate forced labor victims.

At that time, the FKI and Keidanren agreed to pay 1 billion won ($750,000) and 100 million yen ($740,000), respectively, without confirming whether Mitsubishi Heavy Industries and Nippon Steel will also make donations. The two Japanese firms were ordered by the Korean Supreme Court in 2018 to compensate the victims of forced labor during World War II.

During Wednesday's press conference in Tokyo, Keidanren Chairman Masakazu Tokura reiterated that the lobby group will neither force nor ban the participation of Mitsubishi Heavy Industries and Nippon Steel in contributing to the fund.

"The specific theme of the fund is important," the chairman told reporters. "Participation in the project will depend on each company's intention."

However, both Mitsubishi Heavy Industries and Nippon Steel remained lukewarm about participating, saying that they will review details about the fund, according to Yonhap News Agency.

The FKI's acting Chairman Kim Byung-joon, claimed that frequent questions about the two companies' participation will make the fund less meaningful, as it will be created for the bilateral cooperation of both countries ― in the future.

In response to questions about the participation of Samsung, SK, Hyundai Motor and LG, all of which left the FKI after a corruption scandal in 2016 that resulted in former President Park Geun-hey being put behind bars, Kim answered that any company will be able to make contributions regardless of membership.

"When the FKI organized business meetings during the Korea-Japan summit and the Korea-U.S. summit, the four business groups gladly participated in the events for the national interest," he said. "The fund is also for Korea's interest, so I'd like to say that the door is open to all."

While keeping silent about the list of Korean and Japanese companies that showed interest in contributing to the fund, the FKI and Keidanren just unveiled who will participate in the fund's steering committee, along with who will co-chair the committee.

According to the business lobbies, Samyang Holdings Chairman Kim Yoon and Kolon Honorary Chairman Lee Woong-yeul will participate in the steering committee. From Japan, former Mizuho Financial Group Chairman Sato Yasuhiro and Hitachi Chairman Toshiaki Higashihara will serve as committee members. For a separate advisory committee, its chair positions were given to Korea University economics professor Kang Sung-jin and Waseda University economics professor Yukiko Fukagawa.

The FKI and Keidanren also announced that they will jointly host a forum in Seoul on July 6, as part of efforts to boost the business ties of both countries.

pjh@koreatimes.co.kr