The leaders of South and North Korea have signed a final declaration after holding two rounds of summit talks Wednesday in Pyongyang.

The statement, formally titled "Declaration for Development of Inter-Korean Relations and Peace and Prosperity," consists of eight points.

The declaration was signed by South Korean President Roh Moo-hyun and North Korean leader Kim Jong-il in his capacity as chairman of the National Defense Commission. A signing ceremony was held at one p.m. Thursday at the Baekhwawon Guesthouse in the North Korean capital.

Under the declaration, the two sides agreed to ease military tensions and cooperate to establish peace on the Korean Peninsula. The two sides will hold inter-Korean defense talks next month and also work to set up a joint fishing zone in the West Sea to avoid accidental armed conflicts.

The joint declaration called for efforts to convert the current armistice into a permanent peace regime. The two sides agreed to push for a formal end to the Korean War by holding a three- or four-way summit in Korea with the leaders of countries concerned.

South and North Korea also pledged joint efforts for the smooth implementation of the six-party joint statement of September 19th, 2005 and the related action plan of February 13th, 2007.

With regard to inter-Korean economic cooperation, the declaration called for the establishment of a special peace zone near the North Korean city of Haeju and surrounding areas.

The two sides also agreed to use the cross-border Gyeongui Railway for freight transport.

Under the declaration, the two Koreas will open a direct air route between Seoul and the North Korean side of Mount Paekdu to allow South Koreans to visit the peninsula's tallest mountain.

South and North Korea promised joint efforts to actively promote humanitarian cooperation and expand reunions of separated families.

The two sides will hold talks at the prime minister-level this November in Seoul to implement the agreements.