The Unification Ministry says it will push ahead with plans to allow private entities to conduct barter trade with North Korean firms despite confirmation that Kaesong Koryo Insam Trading Company breached UN sanctions. 

An official told reporters on Tuesday that other companies in North Korea were not found to have violated UN sanctions, though the ministry is still reviewing final approval.

The ministry initially considered approving a 150 million-won project between a local farmers' group and Kaesong Koryo Insam Trading Company, to bring in North Korean ginseng, blueberry liquors and other products in exchange for sugar. 

However, the plan was scrapped after the firm was found to be on the international sanctions list for its suspected handling of the North's foreign currency earnings under Bureau 39 of the ruling Workers' Party.

Since taking office last month, Unification Minister Lee In-young has been seeking to bring frayed inter-Korean ties back on track through cooperative projects, including the envisioned barter transaction deal. 

He said that such small-scale trade could be a starting point for full-blown cross-border cooperation.