Officials from the two Koreas are meeting for the second and final day of bilateral discussions on pending issues.

A government official said Tuesday's talks at the North's border city of Gaesong are likely to face difficulties as the two sides may clash over some issues as they try to produce tangible results. The first day of discussions ended smoothly with both sides simply conveying their basic opinions and positions on major issues of concern.

On Monday, the South offered to make an 'important proposal' to ensure substantial progress in the six-nation nuclear talks if the North returns to the stalled negotiations. But Seoul did not elaborate on that.

South Korea also stressed the need to normalize inter-Korean relations by holding ministerial talks next month and to promptly conduct trial operations of inter-Korean railways and roads. Seoul also proposed another round of family reunions be held on August 15th upon the 60th anniversary of Korea's liberation from Japanese colonial rule.

The North, on its part, called on the South to abolish its National Security Law and asked for fertilizer and food aid.

The ongoing talks are regarded to be significant as they come after a ten-month hiatus in inter-Korean dialogue.