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South Korea approves $6m aid for North Korean children North Korea proposes talks on reopening Kaesong zone
(about 1 hour later)
South Korea is providing $6m (£4m) in aid to North Korea, amid deadlock over reviving the jointly-run Kaesong Industrial Complex. North Korea has proposed talks with the South on reopening the joint Kaesong industrial complex, days after Seoul offered "final talks" on the issue.
South Korean officials say it is the first time in two years that government aid has been sent to North Korea. Pyongyang said its workers would return to the complex and the safety of South Korean staff would be guaranteed.
Both sides would prevent another suspension of operations, the statement carried by KCNA news agency said.
South Korea has demanded Pyongyang provide guarantees it will not unilaterally close the zone again.
It was not immediately clear whether North Korea's offer fulfilled Seoul's criteria for a guarantee.
The North Korean offer came shortly after Seoul announced insurance payments to companies affected by the stoppage - a move seen as paving the way for a formal closure of the site.
There was no immediate response from the South to Pyongyang's offer.
'New phase'
The zone, which lies just inside North Korea, has been closed since Pyongyang withdrew its workers in April.
It is home to 123 South Korean factories employing more than 50,000 North Korean workers, and is a key source of revenue for the North.
Several rounds of talks on resuming operations ended in deadlock in July.
This statement, attributed to North Korea's Committee for the Peaceful Reunification of Korea, offered talks on 14 August.
"The North side will lift the step for temporarily suspending operations... [and] allow the entry of South Korean businesses," it said.
"The North and the South will prevent the recurrence of the suspension of operation in the KIZ [Kaesong Industrial Zone] and ensure normal operation in the KIZ without being affected by any situation in any case," it said, without giving further details.
The proposal was "prompted by [North Korea's] desire to bring about a new phase of reconciliation, co-operation, peace, reunification and prosperity by normalising operation in the Kaesong zone", the statement added.
Aid pledge
Hours earlier, as around 500 South Korean factory owners and workers protested in Paju over the closure, Seoul said it had authorised insurance payments worth 280bn won ($251m; £163m) to companies affected by the suspension.
Under insurance rules, companies can receive up to 90% of their investment losses in compensation, and ownership of the companies' assets will go to the government, South Korean news agency Yonhap reported.
The move was seen as a step towards closing down the zone permanently.
The proposed movement on Kaesong also came a day after Seoul said it was providing $6m (£4m) in aid to North Korea.
South Korean officials said it was the first time in two years that government aid had been sent to North Korea.
The North, which suffered severe floods in the last two years, relies on aid to feed its people.The North, which suffered severe floods in the last two years, relies on aid to feed its people.
But the flow of aid from Seoul has been halted in recent years amid deadlock over North Korea's nuclear ambitions.But the flow of aid from Seoul has been halted in recent years amid deadlock over North Korea's nuclear ambitions.
The aid will be sent through the UN children's charity Unicef, and will provide vaccines, medical care and food for children.The aid will be sent through the UN children's charity Unicef, and will provide vaccines, medical care and food for children.
The pledge marks a change in tone between the two nations after months of political stalemate, the BBC's Lucy Williamson in Seoul reports.
However, relations between the two countries remain mired in mistrust, our correspondent adds.
Talks on resuming operations at the joint Kaesong industrial zone ended in deadlock over Seoul's insistence that Pyongyang agree not to unilaterally close the complex again.
The zone has been closed since April, when North Korea withdrew its workers.
The closure came amid high tensions on the peninsula in the wake of North Korea's 12 February nuclear test and then annual US-South Korea military drills.
Pyongyang has not responded to Seoul's offer on 29 July of "final talks" on restarting the zone.
On Wednesday, about 500 South Korean workers and factory owners rallied near the inter-Korean border at Panju, demanding the park be reopened.
Meanwhile, Seoul said it had authorised insurance payments worth 280bn won ($251m; £163m) to South Korean companies affected by the closure of the complex, South Korean news agency Yonhap reported.
Under insurance rules, companies can receive up to 90% of their investment losses in compensation, and ownership of the companies' assets will go to the government, Yonhap added.