Seoul's Unification Ministry has approved insurance payments for South Korean companies whose operations have been suspended at the inter-Korean factory park in North Korea.  
 
Ministry spokesman Kim Hyung-seok said Wednesday the 18-person South and North Exchange and Cooperation Promotion Council reached the decision.  
 
Kim explained reasons occurred to make the payment since North Korea unilaterally breached inter-Korean agreements to halt operations at the Gaeseong Industrial Complex in April. The coverage will compensate the firms for the period following one month after the initial operational stall.
 
The 109 companies that have production bases in Gaeseong or provide services for such firms will receive the payment of more than 280 billion won, or around 250 million U.S. dollars, from Thursday. A maximum compensation limit is set at 90 percent of their investment losses or 7 billion won for each company.

The spokesman said that the ministry is lso working on ways to compensate operational losses of the South Korean firms as well.
 
With the government approving the insurance coverage, observers say Seoul is now taking steps to carry on with what it called a “grave decision” regarding the Gaeseong park.
 
Through the insurance payment, the government will gain the subrogation rights to represent the interest of the South Korean assets left behind at the inter-Korean venture.