Working-level talks between the two Koreas continue in the North Korean city Gaesong on cooperation in light industry and the development of natural resources in the North.

In their second day of talks Friday, the two sides are expected to negotiate the price and volume of industrial materials that Seoul will provide to the North, after failing to reach an agreement in the first round of negotiations last month.

North Korea said Thursday during the talks that certain items are too expensive and should be replaced with cheaper ones.

South Korea has pledged to come to a conclusion the issue at this round of talks, which is expected to end Friday, and is likely to discuss natural resource development at three North Korean mines. In addtion, a timetable for shipments of the light industrial materials and a joint-research plan for natural resource development are likely to be drafted.