South and North Korea have agreed on the land lease fee for the Gaesong Industrial Complex.

Seoul has agreed to pay 18.3 billion won or 16 million U.S. dollars for the use of the industrial park's one million pyong or 3.3 million square meters of land. The amount includes the lease and expenditures needed to tear down existing facilities.

The user fee for one pyong of land in the industrial complex is expected to be below 150 thousand won or 131 dollars.

Of the total costs, four million dollars will be paid in kind, including buildings and other facilities to be constructed at the site.

The Korea Land Corporation and Hyundai Asan, South Korean operators of the inudstrial park, reached the agreement with North Koran authorities after two days of negotiations that ended in the North Korean border city of Gaesong on Wednesday.

The two sides will formally sign the agreement in Gaesong next Tuesday.