An official at the Ministry of Unification said Saturday South Korea's animation production house Yami Co. plans to produce an animated movie with North Korea's Scientific and Educational Film Agency.

Yami is in talks with the Pan-Pacific Economic Development Association of Korean Nationals, a North Korean association stationed in China that promotes investment in the country.

Under the plan, Yami will handle planning and produce the characters and North Korea will handle the line work.

However, the official said that, Yami and its North Korean partner have yet to settle terms on the project, including profit sharing.

Last November, the government granted Yami permission to pursue a partnership in North Korea.