South Korea on Friday (July 5) confirmed that North and South Korea had agreed to hold talks aimed at reopening Kaesong Industrial park, that was a rare source of cash for the North three weeks after their last attempt at dialogue collapsed in bickering over protocol.

North Korea accepted the South's proposal on Thursday (July 4), made by its Unification Ministry, paving the way for talks on Saturday (July 6).

The two sides used a telephone hotline restored by the North late on Wednesday (July 3) amid pressure from owners of small and medium South Korean firms in the Kaesong industrial zone. The companies had sought action to stem losses caused by the shutdown.

The North had proposed talks to reopen the factory zone, which generates 90 million U.S. dollars annually in wages for its workers. It shut the zone down in April at the height of weeks of tension during which Pyongyang threatened both South Korea and the United States with nuclear annihilation.

Presented by Adam Justice