The two Koreas on Saturday opened four days of economic talks in South Korea's tourist island of Jeju.

The Unification Ministry in Seoul said North Korea's delegation led by chief delegate Ju Dong-chan arrived in Jeju around 4:30 p.m. Vice Finance and Economy Minister Bahk Byong-won will lead Seoul in the talks.

The meeting is the first since Pyongyang abruptly canceled test runs of inter-Korean railways late last month, angering Seoul.

The two sides are expected to discuss a new agreement on economic cooperation, including South Korean assistance for North Korea's light industry and joint development of minerals.

Ministry officials, however, said they expect the canceled test runs to hamper the negotiations.

Pyongyang defended the cancellation by blaming South Korea's political situation and refusal to discuss the redrawing of the inter-Korean maritime border.