NKorea 'wants formal Kaesong talks'

Kaesong, which opened a decade ago, is seen as a symbol of inter-Korean co-operation

North Korea has proposed official talks with South Korea on normalising commercial projects, a month after operations at the joint Kaesong industrial zone were suspended.

In a statement from state news agency KCNA, North Korea said the place and date could be "set by the South side".

Kaesong, just inside North Korea, is a key source of revenue for Pyongyang.

But it pulled out its workers in April amid high tensions on the peninsula following its 12 February nuclear test.

Since then operations at the zone, where more than 100 South Korean manufacturers employ some 53,000 North Korea workers, have been halted for the first time since the project began a decade ago.

North Korea said late last month it would invite South Korean businessmen back to discuss the resumption of operations but Seoul ruled that out, saying government-level talks should be held.