South Korea and the Democratic People' s Republic of Korea (DPRK) agreed in principle early on Sunday to normalize operation of the joint Kaesong industrial zone (KIZ), heralding a thaw in the inter-Korean relations.

Under the agreement reached at 4:05 a.m. local time after about 16 hours of talks, Seoul and Pyongyang agreed to urge companies to "reactivate" their factories at KIZ on the companies' preparations, said a joint statement posted on website of South Korean Unification Ministry.

Both sides agreed to hold follow-up talks on July 10 at KIZ to discuss how to prevent recurrence of unilateral shutdown of KIZ as part of normalization of the inter-Korean industrial park in the DPRK's border town of Kaesong.

The KIZ, where 123 South Korean companies run factories, was suspended in April after Pyongyang banned about 53,000 of its workers from reporting to work amid high tension on the Korean Peninsula. Seoul also withdrew its personnel after the DPRK rejected talks.

Both sides also agreed to allow South Korean businessmen to start inspecting their factories at KIZ on July 10, maintain manufacturing facilities to diminish damages during the rainy season, and bring back finished products and materials out of KIZ.

Pyongyang promised to guarantee security and safe passage of personnel and vehicles of these companies to and from Kaesong.

Three-member delegations from both sides started the working- level talks at 11:45 a.m. Saturday local time at Thongil House on the north side of Panmunjom truce village.

At first, Seoul and Pyongyang differed over top agenda of the talks.

Seoul demanded safeguards to prevent recurrence of unilateral shutdown of KIZ to be prioritized, while Pyongyang insisted on maintaining facilities at KIZ rather than carrying back material.

The delegations held two rounds of plenary sessions and 10 rounds of top-delegate talks.

South Korea sent Suh Ho, director-general of the Unification Ministry's inter-Korean district support directorate, as top negotiator, while the DPRK delegation was led by Park Chol-su, vice director of the General Bureau of the Central Special Zone Development Guidance.

The agreement raised hopes that the follow-up talks scheduled for Wednesday may lead to a thaw in the inter-Korean relations that have been strained since late last year.

South Korean chief delegate Suh told reporters Saturday before heading to Panmunjom that the delegation "will do its best to channel small trust and cooperation into bigger trust and cooperation." Endi

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