Seoul Central District Court said each of he 135 lepers who filed the suit against the government in 2012 should receive 30 million (USD 27,394) to 40 million won.
"This is another landmark ruling that recognises the government's responsibility to protect lepers who were one of the most vulnerable minorities in our society," said Park Young-Lip, the lawyer for the victims.
The latest ruling is the third in favour of lepers seeking redress from the government for abuses including being forced to live on a distant southern island, until the law was removed in 1963.
Leprosy is a contagious bacterial disease which can be cured with a sustained course of antibiotics, but can cause deformations if untreated.
A court in April 2014 ruled in favour of a group of plaintiffs in a landmark ruling, and in February ordered the government to pay compensation to another 183 victims.