Seoul, Sep 11 (IANS): South Korea and North Korea have agreed to reopen the Kaesong industrial complex Sep 16, Seoul's unification ministry said Wednesday.

Seoul and Pyongyang announced a joint statement Wednesday to reopen the facility after agreeing on institutional tools to develop the factory park in a progressive way, reported Xinhua.

South Korea and North Korea had agreed in principle to reopen the inter-Korean factory park in mid-August, but they were yet to discuss detailed conditions for the full reopening date.

"Institutional tools were actually provided through this second meeting of the joint committee to stably develop the Kaesong complex into an internationally competitive one," stated the ministry.

The agreement would contribute to trust-building and sustainable progress in inter-Korean relations, it added.

According to the agreement, the two sides would reopen the joint factory park in the North Korean border town of Kaesong Sep 16 after conducting a trial run.

The factory park, which has been suspended for more than five months, would be back on track just before the three-day Chuseok holiday that falls Sep 19.

The two sides agreed on how to set up and run the standing secretariat of the joint management committee for the Kaesong industrial zone.

Both Seoul and Pyongyang would have an equal say on the zone.

The two sides agreed to form a joint arbitration committee that would settle business disputes within the Kaesong industrial zone.

The committee, which would be comprise a chairman and four members each from Seoul and Pyongyang, would be set up within three months.