South and North Korea have agreed on the need for better flood prevention measures ahead of the rainy season and for setting up a liaison office to supervise bilateral trade.

After overnight negotiations Thursday, the two sides agreed to build the liaison office in the border city of Gaesong and put it into operation after completing the construction of a development office for the Gaesong industrial complex. They also decided to invite South Korean firms to launch operations at the first phase trial site of the industrial park from the latter half of this year.

The two Koreas also agreed to establish a joint flood prevention system for the Imjin River, which runs through the demilitarized zone between the two nations. They agreed to carry out inspections around the upper stream region from next month and notify each other of their findings.

On the timeframe of re-linking cross-border railways and roads, the two sides decided to complete the project as soon as possible. South Korea wanted the reconnection works to be finished by June 15, but the North insisted that it would be physically impossible to conclude construction by that date, the fourth anniversary of the landmark South-North summit.

South and North Korea agreed to convene in Pyongyang in June to hold another round of economic cooperation talks.