The Unification Ministry has proposed a "German approach" to address the issue of South Korean prisoners of war and abductees in the North.

The "German approach" refers to the past repatriation of West German nationals in East German prisons in return for West Germany's economic assistance.

A ministry official said Thursday the ministry proposed the approach in its policy briefing to President Lee Myung-bak the previous day.

The ministry reportedly said it will give top priority to resolving the issue of South Korean POWs and abductees. It pledged that the government will bear any related financial burdens.

The proposal includes detailed, multi-staged plans. It calls for dialogue at the government level and between Red Cross officials of the two Koreas in order to resolve the issue.

But North Korea continues to deny the existence of South Korean POWs and abductees.