Twenty-five companies will buy 165,000 square meters of land in North Korea's Gaesong Industrial Complex.

The government on Monday said the first stage of the sale will mainly target textile or clothing manufacturers, sewing factories and producers of non-strategic products.

An official said the North has agreed to cooperate on the construction of the main parts of the complex in recent inter-Korean talks, and that small and mid-size firms urged early development.

The government will complete the development of 3.3 million square meters of land in the complex by 2007 and 66 million square meters to include those in nearby cities by 2012.