SEOUL, July 18 (Xinhua) -- South Korea has decided to offer financial support for the reunion of the war-separated Korean families, scheduled in late August, Seoul's unification ministry said Wednesday.

About 3.23 billion won (2.85 million U.S. dollars) was earmarked to financially support the reunion of the separated families, which South Korea and the Democratic People's Republic of Korea (DPRK) agreed to hold from Aug. 20-26.

The money would be financed from the inter-Korean cooperation fund, which the South Korean government set up in 1991 to help boost inter-Korean exchanges.

Some two-thirds of the money would be spent holding the reunion event at the DPRK's southeastern scenic resort of Mount Kumgang.

The remainder would be used to repair facilities for the meeting of the Korean families, who have never contacted nor visited each other across the border since the 1950-53 Korean War ended with armistice.

Since July 9, a group of South Korean workers have visited the reunion venue for repair and maintenance works.

Meanwhile, South Korea separately allotted 86 million won (76,000 U.S. dollars) to repair works for the liaison office, which the two Koreas agreed to establish in the DPRK's border town of Kaesong.

The leaders of the two Koreas agreed to set up the liaison office for inter-Korean communications during their first summit meeting on April 27 at the border village of Panmunjom.

The South Korean government aimed to launch the liaison office by the end of August.