South Korea's government is expected to formally announce this month the disbandment of a foundation set up to settle the issue of Japan's recruitment of wartime sexual slaves from Korea.

The "Reconciliation and Healing Foundation" was funded with one billion yen, or more than eight million dollars, from Japan under an agreement struck between the two countries during the Park Geun-hye administration in late 2015.

That agreement has since come under strong criticism as being inadequate, and many victims still say they want a formal apology from Japan.

A senior government official says following the announcement, the legal process of disbanding the foundation is expected to take six to 12 months.

Bilateral talks are expected to be scheduled to determine how Japan's billion yen donation should be used.