The agreement came even as military tension has heightened on the divided peninsula following a land mine explosion blamed on the North in the heavily fortified demilitarized zone.

The North has denied any role in the blasts, rejecting Seoul's call for apologizing for the incident that seriously wounded two South Korean soldiers.

The joint factory park, opened in 2004, is the last remaining symbol of inter-Korean reconciliation. It has served as a major revenue source for the cash-strapped North, while South Korea has utilized cheap but skilled North Korean laborers.

Seoul has rejected Pyongyang's unilateral move to hike the wage, saying that it breaches a 2004 agreement that calls for the two sides to set wages through consultations.

In July, the two sides held talks of the joint committee that operates the complex, the first since June last year, but they failed to reach an agreement.

The ministry said that the two Koreas plan to hold a meeting of the committee to discuss how to revise labor guidelines.

The government official said that the two sides have agreed to continue to set the wage cap through consultations.

"By taking into account the grave situation facing inter-Korean ties, the government plans to take measures to develop the complex," the official said.

The operation of the complex has been highly swayed by the level of tension on the peninsula. In April 2013, the North unilaterally shut down the park for about four months. (Yonhap)