On the third day of inter-Korean business talks Monday, the two Koreas will begin coordination on a joint statement.

Senior delegates Sunday night discussed Pyongyang's cancellation of the inter-Korean railway test runs last month, Seoul’s provision of light industrial raw materials and other cross-border projects.

Based on the first draft of the agreement exchanged Sunday, the two sides will on Monday try to bridge their gap on the railway test runs. South Korea insists that raw material aid will come only with the test runs while the North demands the South to proceed with the provision.

But partial agreement is expected on other projects, including joint sand collection in the Han River estuary and cooperative development of natural resources.

The delegates will later attend a farewell dinner hosted by Unification Minister Lee Jong-seok.

The 12th talks by the Inter-Korean Economic Cooperation Promotion Committee are being held in South Korea's Jeju Island. The last meeting was in October last year.