South and North Korean officials participating in an inter-Korean economic cooperation meeting in Pyongyang are preparing a joint statement as talks continue into a third day.

The two sides exchanged their draft statements in a morning session on Friday.

A South Korean delegate says the discussions were sincere and covered most of the pending issues, implying that Seoul conveyed its stance to Pyongyang on the delivery of 500-thousand tons of rice aid and the holding of cross-border railway test runs.

In a keynote speech during Thursday's talks, Seoul linked the rice aid to the North's moving forward on its commitments under the six-way nuclear agreement.

Difficulties are expected as North Korea has protested that the nuclear issue is not on the agenda for the economic talks.