The 16th Inter-Korean ministerial talks have entered their second day in Pyongyang.

In a full session on Wednesday morning, the two sides are set to lay out their respective agendas for the talks.

The South wants to discuss, among other things, the issue of establishing a permanent peace mechanism on the Korean Peninsula, and the scheduling of much-delayed inter-Korean general-grade military talks. Seoul also wants cooperation in determining the fate and whereabouts of South Korean POWs and abductees believed to be in the North and arranging more reunions for separated families.

The two sides are further expected to hold behind-the-scene discussions to resolve the ongoing row between Hyundai Asan and North Korea over the South Korean company's tourism project in the North.

Late last month, the North abruptly cut in half the number of South Korean tourists to Mount Geumgang, blaming the company’s move to dismiss its Vice President Kim Yoon-kyu, a Pyongyang favorite.

The North recently upped its ante in the dispute by inviting another South Korean tourism company to take charge of the Gaesong tour program, which was originally awarded to Hyundai Asan.