A statue commemorating the so-called "comfort women" used as sexual slaves in World War II has sparked a dispute between members of Sydney's Korean and Japanese communities.

The local Korean community and a Sydney charity are being pressured not to display the 1.5-metre statue from Korea, which was due to be unveiled this week in Sydney's inner west.

The issue of comfort women has long been a vexed one.

Japan had refused to accept formal legal responsibility for the women used as sex slaves during WWII including Korean, Chinese, Dutch and Australian women.

Last year, an agreement was reached between South Korea and Japan, with Japan offering an apology and compensation for surviving comfort women.

But the Sydney statue has upset some in the local Japanese community, and the president of the Australia-Japan Community Network has lobbied the State Government and the Uniting Church-run charity The Exodus Foundation.

Foundation founder Reverend Bill Crews said he supported the statue and planned to place it in the foundation's gardens in Ashfield later this year.

"I do not want history to be whitewashed," he said.

"This isn't just a diatribe against Japan, it's about the way women get treated in all wars. And the way men treat women. It's also about the dark side of human nature."

Reverend Crews said he met with Minister for Multiculturalism John Ajaka and the Japanese Consul-General last week.

"And basically their concern was three words: 'Japanese' and 'comfort women' … they were very concerned about community conflict," he said.

Comfort women were forced into sexual slavery by the Japanese army during WWII. ( No. 9 Army Film & Photographic Unit: Titmuss A D )

The ABC has requested comment from the Japanese Consul-General.

Reverend Crews said the statue could be erected on church grounds if Canterbury-Bankstown Council did not install the sculpture on council land.

"In this place we don't accept violence against people, we don't accept people being abused, we don't accept people being sexually exploited," he said.

"Those sorts of things are always wrong, no excuses, and a statue like this going up says 'this is wrong'."

Statue would be discriminatory, Japanese community group says

The ABC has obtained a copy of a letter from the lawyers for the Australia-Japan Community Network sent to the Canterbury-Bankstown Council in late June.

The letter states that the statue would be in breach of section 18C(1)(a) of the Commonwealth's Racial Discrimination Act as it would be "reasonably likely, in all the circumstances, to offend, insult, humiliate or intimidate another person or a group of people".

In a letter sent to Mr Crews in June, network president Tesshu Yamaoka said the statue was being pushed by political activists "connected to north Korea".

"These Korean anti-Japan activities are being utilized as a part of the Chinese Communist Party's information operation attempting to cut the ties of the alliance between Japan, the US and Australia," he wrote.

Vivian Pak from the Peace Statue Establishing Committee in Sydney said the statue was about peace, not racial hatred.

"It hasn't got anything to do with social division. I would love to have Japanese community members come on board ... they're our friends, you know - we can make a peaceful relationship with them," Ms Pak said.

"This is all about calling of an end to war and violence, and security of human rights."

A similar monument was planned for the inner-west suburb of Strathfield last year, which sparked controversy both for and against the project. Strathfield Council vetoed the project because it did not meet the council's memorial guidelines.

The Canterbury-Bankstown Council has been contacted for comment.