North and South Korea agree to talks

(Transcript from World News Australia Radio)

The surprise offer from Pyongyang proposes discussions on a range of commercial and humanitarian issues, from reopening a joint industrial complex, to resuming cross-border family reunions.

But some commentators have expressed doubt at whether long-term change will be achieved at the talks.

Hostility between North and South Korea reached fever pitch earlier this year in March and April after the UN voted to impose tougher sanctions on Pyongyang in response to the North's third underground nuclear test.

But now there are hopes both countries are moving toward a thaw in relations after North Korea announced its openness to hold talks with South Korea for the first time in years.

In a statement reported by state media on Thursday, Pyongyang has proposed the talks focus on the Kaesong joint industrial zone which was shut down at the height of tensions in early April.

The government says it is also open to discussions on humanitarian issues such as reunions between family members separated after the 1950-53 Korean War.

South Korean President Park Geun-Hye welcomed North Korea's gesture.

Spokesman for the South Korean Unification Ministry Kim Hyung-Suk says the government is determined to develop policy initiatives to build trust between the two countries.

"Our government considers North Korea's offer positively. And we hope the talks between the South and North Korean authorities can be an opportunity to build mutual trust between the two Koreas, as our government has emphasized several times under the Trust Building Process policy."

China has welcomed the move.

China's foreign ministry spokesman Hong Lei says China has high hopes for what the talks can achieve.

"China expresses happiness and welcomes North and South Korea's decision to resume contact and dialogue. We have always supported North and South Korea resolving their problems and improving relations through dialogue and consultation. We hope that the relevant parties cherish this momentum for talks which has not come about easily."

UN chief Ban Ki-moon says he hopes the talks will go a long way to reducing tensions and promoting peace and stability on the Korean Peninsula.

Analyst of Korean affairs at Sydney University Dr Leonid Petrov says the invitation by North Korea to hold talks marks a changed strategy by North Korea in dealing with growing tensions over its nuclear program as well pressures from an ailing domestic economy.

"In order for the elites (in North Korea) to survive, Kim Jong Un needs humanitarian aid and during the Sunshine policy aid in the form rice, fertilisers, technology would go to North Korea unconditionally. And resuming good relations with South Korea would be instrumental for the survival of the regime. So even inter-Korean cooperation to some degree is important for North Korea. Kim Jong Un also wants to improve relations with the United States which is also absolutely necessary for the survival of North Korea.

But he says there are a number of stumbling blocks that makes long-term change in the relationship between the two Koreas unlikely.

"I think there is a window of opportunity which we should look forward to but again I must warn you that again don't expect too much because the differences between North and South Korea are irreconcilable and the policy of both states for too long, for the last 65 years absolutely adamant about the elimination of the other state. But it looks like there is some interest to avoid an extremely volatile and dangerous situation something that what happened on the Korean peninsula just a couple of months ago when you remember North and South Korean were on the verge of new war."

The date and venue of the talks are yet to be worked out, but Pyongyang says it wants the talks inside North Korea and at a lower level than the ministerial meeting proposed by the South Korean government.

North Korea says it will restore an official hotline with South Korea to allow discussions to continue.