The Unification Ministry announced on Friday that it was planning to provide extra financial support worth 59 million U.S. dollars to South Korean firms who had previously run factories in the Kaesong Industrial Complex.
Out of the 59 million dollars, 13-million will be used to compensate businesses who had invested in real estate, factories and production machinery in Kaesong.
46-million dollars will be used to compensate them for their current assets including raw materials and products.
"We hope the government's decision will help in supporting local companies involved in the inter-Korean business projects to overcome their troubles and work with the government in looking towards the future."
The extra aid comes on top of the previous government's assistance of 4-hundred-sixty-three million dollars.
The firms claimed that the closure has resulted in more than 1-billion dollars in losses saying that the government's financial support is not sufficient to cover the damage.
The Unification Ministry said that the fresh support will be able to cover some 74-percent of the damage.
Seoul shut down the joint production zone in February last year in response to Pyongyang's nuclear and missile tests.
The factory zone, which was launched in 2004, had accommodated over 1-hundred South Korean firms which employed more than 54-thousand North Korean workers to produce labor-intensive goods such as clothes and utensils.
The South Korean government also plans to provide financial support for the first time to South Korean firms that invested in inter-Korean economic projects and suffered losses due to the 2008 halt to the Mount Kumgang tour program and the 2010 economic sanctions on Pyongyang known as the May 24th Measure.
In July 2008, Seoul suspended the Kumgang tour project after a South Korean woman was killed by a North Korean soldier at the mountain resort.
The program was launched in 1998 under a previous liberal government.
Ji Myung-kil, Arirang News.