Despite escalating tension over North Korea's alleged preparation for a ballistic missile test, the two Koreas are going ahead with bilateral talks and events as planned.

The Unification Ministry in Seoul said Monday that the two sides will hold two days of talks from Tuesday to discuss simplifying customs procedures for their joint industrial park in the North Korean border city of Gaesong.

South Korean companies are operating factories at the complex using cheap North Korean labor.

Seoul last week also said it will continue major inter-Korean projects even if Pyongyang launches the long-range missile.

Meanwhile, the 14th reunion of separated families from the two Koreas began Monday at the Mount Geumgang resort in the North.