The two Koreas on Wednesday began construction of a family reunion center at North Korea's Mount Geumgang.

The 12-story center has one underground level and a floor area of some 20-thousand square meters, spread out over 50-thousand square meters of land in Onjeong-ri, Goseong county, across the border from South Korea's Gangwon Province.

With completion set for April 2007, the facility will have convention halls, an observatory and 278 rooms to accommodate a thousand people at a time.

A host of dignitaries turned out for Wednesday's groundbreaking ceremony, including South Korea's Red Cross chief, Han Wan-sang, who said the significant event will help to soothe the pain of separated families.

Among the 800 attendees were some 530 family members from both Koreas who held three days of reunions at the North's Geumgang resort.

The two Koreas agreed to establish a permanent reunion venue during the first cross-border Red Cross talks in June 2000 and finalized the construction date during ministerial talks this June.

The North will provide labor, resources and design consulting and the South will pay for and handle construction.