The South Korean government has been slammed by a civil rights commission for offering a woman a little over $4 in compensation for the death of her brother in the Korean War.

The South Korean woman, 63, only discovered a few years ago that her brother had been killed during the war.

She sought compensation from the veterans affairs ministry, but after initially refusing, officials then offered her 5,000 won ($4.20) - the amount provided to families after the war 60 years ago.

The presidential Anti-Corruption and Civil Rights Commission has called the decision "incomprehensible", saying the government failed to take into account six decades of inflation.

"We hope that this case will lead to forming a system of adequately compensating the families of Korean War veterans who continue to live with deep pain," the commission said.

Bae Moon-Kyoo, a commission official in charge of the matter, says the 5,000 won payout should be equivalent to 760,000 won ($662) now.

The woman was two years old when her brother was killed in combat in 1950.

But she never knew of his existence until told of his death by a neighbour, local media reported, adding the children's mother suffered from dementia.

Nearly 140,000 South Korean soldiers were killed in combat and as many as 130,000 are missing in action according to the defence ministry.

ABC/wires