South Korea's Supreme Court on Thursday upheld lower court decisions ordering Japanese steelmaker Nippon Steel to pay damages to South Koreans over forced wartime labor.

The ruling comes after the top court last month ordered the company and two other Japanese firms to compensate victims of forced labor during Japan's colonial rule of the Korean Peninsula.

The rulings followed an improvement in Japan-South Korea relations since Seoul announced a plan in March last year to resolve the wartime labor compensation issue.