Day two of inter-Korean talks on cross-border transportation routes convened in the North's city of Gaesong on Friday, focusing on the construction of a building that would serve as the mid-way station connecting the railways lines of both sides.

A South Korean official said both sides were in final negotiations on the station to be built at the truce village of Panmunjom.

The official said the South preferred a station that would accommodate all facilities and functionalities within a single building but the North wanted separate buildings that would serve different functions of the planned railway platform.

Both sides agreed that required construction materials would be provided by the South.