The presidential office on Saturday rejected a media report about the idea of establishing a fund involving the Seoul government and South Korean and Japanese companies for the compensation of victims of Japan's wartime forced labor.

The top office described it as "lacking common sense" and said the two countries haven't even exchanged opinions on the idea.

Some in the civic sector have suggested that establishing a fund that includes the South Korean government could be a way of resolving the bilateral conflict over the forced labor compensation issue.

The presidential office has now sternly drawn a line against the idea.

Earlier, a media outlet reported that the idea of a joint fund was relayed to the presidential office but its objection has suspended related discussions.

The report said that following the news, Japanese Foreign Minister Taro Kono expressed distrust in Seoul's top office.

Presidential spokesman Kim Eui-kyeom meanwhile said the article is completely untrue. He said Seoul and Tokyo continue communication on the forced labor issue but have not exchanged any opinions on the idea of a fund.

Seoul's Foreign Ministry also said the media report is entirely untrue.