Japan has rejected South Korea's reported dissolution of a Japanese-funded foundation on wartime sexual slavery, calling the move "unacceptable."

At a press briefing on Friday, Japan's Deputy Chief Cabinet Secretary Yasutoshi Nishimura said Seoul's decision to dissolve the Reconciliation and Healing Foundation, despite a 2015 bilateral deal, is a "serious problem."

The foundation was established in South Korea under the previous Park Geun-hye administration.  

Nishimura said both sides should responsibly enforce the deal even if a new administration enters office.

Claiming President Moon Jae-in stated he had no plans to dissolve the foundation, the official said said Tokyo delivered its position to Seoul through their embassies.

Tokyo provided one billion yen, or about nine million dollars, for the nonprofit organization to compensate Korean victims of Japan's wartime sexual slavery, but Seoul decided to shut it down last November after concluding it failed to reflect the opinions of the victims and could not fundamentally resolve the sensitive issue.

Quoting a foundation official, Japan’s Asahi Shimbun reported on Friday that a dissolution application was filed on June 17th and that the foundation was notified on Wednesday of the completed paperwork.