South Korea has started looking into the operations of a foundation for victims of Japan's wartime sex slavery, established after a controversial "comfort women" deal with Japan in late 2015, according to a senior official Thursday.

"We've launched an inspection team that will review and assess activities of the foundation. It's expected to be wrapped up by late August but could also be delayed a bit," said Gender Equality Minister Chung Hyun-back, referring to the Reconciliation and Healing Foundation, in a meeting with reporters.

Comfort women is a euphemism for Asian women, mostly Koreans, who were forcibly taken to front-line military brothels to serve the Japanese army during World War II. There are currently 37 known remaining survivors of the gross human rights abuse, of whom most are in their 80s or 90s.

In December 2015, Seoul and Tokyo reached a deal to resolve the long-standing comfort women issue with an apology and compensation from Tokyo. Under the deal, Japan injected 1 billion yen ($9 million) into the then-established foundation in exchange for ending bilateral feuds over the matter.

The agreement forged under then-President Park Geun-hye was met with widespread public criticism, with many calling into question its legality and the sincerity of Japan's apology.

The team plans to review the foundation's overall operations, from the usage of the fund and whether there were irregularities in selecting recipients. The foundation has been accused of offering money to the surviving victims without their consent.

The minister's remarks came amid swirling rumors that the foundation could be dissolved as its chairwoman, Kim Tae-hyun, recently handed in her resignation. The foundation processed her resignation earlier in the day.

She also explained that the fate of the foundation will be decided in consultation with the foreign ministry after reviewing the inspection team's report. According to the foundation's articles of association, the gender equality minister, with board approval, can dissolve the organization but requires consent from the foreign minister.

Regarding demands for the money be returned to Japan, Chung said it should be considered along with the fate of the foundation.

"The 1 billion yen is from Japan. We also have to consider diplomatic ties (between the two countries), so it is a matter that should be considered in respect to the future direction of the Reconciliation and Healing Foundation," Chung said. (Yonhap)