The South Korean government has decided to provide about 122-point-eight billion won in compensation to 95 companies suffering losses from its bans on trade with North Korea.

According to the Unification Ministry in Seoul Thursday, an inter-Korean exchange promotion panel consisting of government officials and civilian experts approved the plan this week.

Firms eligible for compensation include those affected by Seoul's decision in 2008 to stop the inter-Korean tourism program to the North's Mount Geumgang after a South Korean tourist was killed by a North Korean solider.

They also include companies whose business was disrupted by the South's restrictions on inter-Korean trade in 2010 following the sinking of the Cheonan warship by the North.

While the latest move is part of the government taking responsibility for the hardship caused by its abrupt policy changes, the ministry said Seoul will make efforts to normalize the companies and help them join cross-border cooperation when conditions are created.