North Korea says it is willing to ease restrictions on overland passage to the Gaeseong Industrial Complex and on the length of stay for South Koreans at the inter-Korean industrial park. The North imposed the restrictions in December of last year.

But the Unification Ministry told reporters that the North also reiterated a number of demands related to the complex, including a hike in land-use fees.

The two Koreas held working-level talks on Friday in two sessions, one in the morning and the other in the afternoon. The two sides agreed to hold a follow-up meeting on July second in the North Korean border city of Gaeseong.

During Friday's meeting, South Korea urged the North to respect existing inter-Korean agreements, rules and regulations for stable development of the joint venture.

Seoul also proposed conducting joint surveys with the North on foreign industrial parks in China, Vietnam, Central Asian countries and the United States.