North Korea seeks talks with South on resuming lucrative tours

North Korea confirmed Saturday it has proposed talks with South Korea on the possible restarting of cross-border tours by southerners to a jointly-run resort.

The announcement came a day after the two sides agreed to resume reunions for families separated by war 60 years ago, a move which could help ease months of tensions sparked by the sinking of a South Korean warship.

The North, in a message to the South\'s unification ministry, called for working-level government talks on October 15 to discuss "the issue of the real estates of the South side in the Mount Kumgang area and the issue of resuming tours," its official news agency said Saturday.

The ministry had said that during Friday\'s talks on reunions the North had proposed discussions about the separate commercial tour programme. It said Seoul has not yet decided whether to accept the proposal for talks on tours.

The trips by South Koreans to the scenic Mount Kumgang resort on the North\'s southeast coast once earned the cash-strapped nation millions of dollars a year.

The South suspended them after a North Korean soldier in July 2008 shot dead a visiting Seoul housewife who strayed into a restricted military zone.

The South says it will not resume the tours until the North allows an on-site investigation into the shooting and gives firm safety guarantees.

In protest at the delay, the North seized or sealed off property constructed by the South at Kumgang, including a purpose-built family reunion centre.

It had demanded that the South lift its tour ban before it agreed on a venue for the reunions, but changed its stance Friday and agreed to open the reunion centre as a one-time measure.

The brief reunions for 200 families will be held from October 30 to November 5.

Relations have been icy since the South in May accused the North of torpedoing a corvette near their disputed border with the loss of 46 lives.

The North vehemently denies responsibility but in recent weeks has made some conciliatory gestures.

Analysts say it may be trying to ease economic pressures as it prepares for an eventual power transition from leader Kim Jong-Il to his youngest son Jong-Un.

Jong-Un was this week promoted to general and given key ruling party posts. On Thursday the North published his picture in what was seen as a clear sign that he is heir apparent.