In March, the 13 individuals, whose identities have not been made public, filed a complaint against the state over the ill-treatment, including sexual abuse, that they suffered at Solgården, in the centre of the Scandinavian country.
The ministry said that between 1949 and 1976, personal accounts and the ministry's files showed "serious and systemic failings during the stay of the 13 former residents in this home, which was under state supervision".
It said in a statement it acknowledged that "extensive and systematic failures occurred" during their stay at the children's home, and that "the state neglected its supervisory duty".
The victims would receive compensation in the amount of 300,000 kroner, it said.
In 2024, a former resident, Tove Dohn Lauridsen, told public radio that she and her sister had been systematically raped by the head of the institution when she was eight years old.
The Lutheran Mission, which ran Solgården, issued an apology in 2024 to all former residents.
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