The inter-Korean ministerial talks in Pyongyang have begun preparation for drafting a joint statement.

South Korean Unification Minister Lee Jong-seok and North Korean counterpart Kwon Ho-ung on Saturday exchanged the initial drafts of the statement and reconfirmed their stances.

In his keynote speech Saturday, Lee proposed the designation of the North Korean city of Tanchon as a special zone for the joint development of natural resources and use of sand in the Han River's western estuary.

He also pledged economic cooperation in return for the North's bold action on South Korean abductees and prisoners of war.

In response, Kwon proposed the elimination of political, military and economic barriers between the two Koreas unrestricted visits to open areas of each side a halt to South Korea's joint military exercises with the United States from next year and unrestricted investment and economic cooperation.

The two sides are expected to announce the joint statement Monday after a final meeting.