South Korea and Japan have agreed to create a joint fund to sponsor scholarships for students as part of a deal to resolve the issue of Korean victims of Japan’s wartime forced labor. The Federation of Korean Industries and the Japan Business Federation will jointly form the fund.

The South Korean foreign ministry is expected to announce the details of the agreement the two countries reached on Monday. The Japanese government has refused to contribute to the fund, insisting that reparations were settled under the 1965 treaty that normalized diplomatic relations between Seoul and Tokyo. The ROK’s Supreme Court ordered Japan’s Nippon Steel and Mitsubishi Heavy Industries to compensate Korean forced labor victims mobilized during Japan’s occupation of Korea.