The government said Wednesday it will provide 1 billion won (US$868,000) in emergency funds for restoration at an island attacked by North Korea's shelling barrage that killed soldiers and wounded civilians.
Forests and homes at Yeonpyeong, an island near Korea's volatile western sea border, went ablaze from more than 100 artillery fired by the North on Tuesday. Some 1,700 island residents have been evacuated to either shelters or the nearest city of Incheon.
The Ministry of Administration and Public Safety said it will first provide emergency funds to finance reconstruction efforts. More aid will be set aside from the state fund for the victims as soon as the extent of the damage is assessed.
"As it is apparent that Yeonpyeong Island is virtually in a state of war after being attacked by North Korea, (the government) plans to put in a 1 billion won special fund to support the restoration cost," a ministry official said.
Under South Korea's civil defense law, the government is required to provide financial support when public safety is endangered by an enemy attack or by an emergency situation.
Residents of the island will also be given tax breaks when they buy new houses, cars and ships to replace those destroyed in the attack, officials said.