South and North Korea have agreed to open a liaison office at the North's Gaeseong Industrial Complex.

The two sides on Friday reached the agreement during the morning session of their high-level talks held on the South Korean side of the truce village of Panmunjeom.

During the talks, North Korea also proposed that joint events to commemorate the first ever inter-Korean summit in 2000 be held in South Korea.

The two sides also agreed on the need to hold working-level talks in various areas of defense, sports and connecting transportation.  

The two sides are now fine-tuning details for a joint statement they are set to announce.