South and North Korea have agreed to build a film and TV production studio in the North's border city of Gaesong.

The South's Korean Broadcasting Commission says North Korea's Radio and Television Broadcasting Committee accepted in principle its offer to jointly build a large-scale studio and that both sides will hold talks to discuss details.

An official of the commission says Seoul also proposed renovating an aging film set in Pyongyang or building a new one.

In August 2002, the state-run commission agreed with its North Korean counterpart to sign a basic agreement on inter-Korean broadcast cooperation.

However, the agreement has yet to be signed.