South and North Korea have agreed to hold working-level talks Saturday on the North Korean side of the truce village of Panmunjeom.

Seoul's Unificantion Ministry official said that the two Koreas reached the decision late Thursday, as the North agreed to the South's original proposal for talks.

The North initially made a counteroffer to Seoul's invitation to meet at the border village or at an inter-Korean transit office, suggesting Gaeseong as an alternative venue.

Following working-level discussions on details, however, the two Koreas decided on the venue where their three-member delegations will meet at 10 a.m. and discuss issues related to the suspended operation of the Gaeseong industrial Complex.

The two sides will exchange the list of three delegates on Friday through the Panmunjeon liaison office.

On Thursday morning, the South Korean government proposed director-level talks with North Korea through an official letter.

Unification Ministry Spokesman Kim Hyung-seok then explained the government made the offer on the principle that the issues surrounding the suspension of the inter-Korean factory park can only be addressed through dialogue.

Kim said companies with factories at Gaeseong are suffering from the past three-month shutdown of the industrial park, and concerns of the state of their equipment are rising as monsoon season begins in full scale.