Despite strained cross-border relations, the government increased next year's inter-Korean cooperation fund.

According to the Unification Ministry on Thursday, around one-point-27 trillion won was proposed for the fund in next year's budget, up one-point-nine percent from this year.

Six-hundred-52 billion won will be used for humanitarian cooperation, taking up 51-point-five percent, followed by 589 billion won for inter-Korean economic cooperation.

The budget for loans in economic initiatives and insurance-related projects were drastically raised by ten-point-two billion won and five-point-seven billion won, respectively.

A ministry official said the size of the fund has returned to 2018 levels in consideration of a change in cross-border ties after next year's presidential election in South Korea.