POSCO donates W3b for forced labor victims

[THE INVESTOR] TOKYO -- POSCO has put down some 3 billion won (US$2.67 million) for a foundation established this year to aid those forced into labor by Japanese companies under colonial rule between 1910 and 1945.

According to reports from Japan’s the Asahi Shimbun on Aug. 25, POSCO made the donation on Aug. 5.

POSCO in 2014 had pledged to make 10 billion won in donations based on claims from forced labor victims the company had abused money that should have been theirs. 

POSCO’s precursor, Pohang Steel -- established in 1968 -- used US$120 million of some US$500 million in economic assistance supplied by Japan to Korea upon their normalization of diplomatic ties in 1965.

The victims unsuccessfully sued POSCO, but the court called on the steelmaker to shoulder the social responsibility.

The foundation is poised to enlist the support of other Korean firms, such as KT and K-Water -- the state-run manager of water resources -- that had also appropriated economic aid from Japan.

The foundation was also quoted as saying it will be asking for donations from the Japanese government and corporate sector.

Currently, more than a dozen lawsuits have been filed against Japanese firms by Koreans who were forced into labor under Japanese colonial rule.

By Kim Ji-hyun (jemmie@heraldcorp.com)
The Investor Correspondent