The talks were continuing into the afternoon in a building known as Peace House at Panmunjom, a village inside the Demilitarised Zone which bisects the peninsula.

The November 23 bombardment of Yeonpyeong island near the disputed Yellow Sea border killed two marines and two civilians and briefly sparked fears of full-scale war.

Tuesday's talks are designed to ease tensions and prepare for a high-level military meeting at which the two incidents will be discussed.

Two colonels leading the talks shook hands across the table before sitting down to business, pictures supplied by the RoK defence ministry showed.

"Both sides have been discussing the agenda and process for a higher-level meeting," said defence ministry spokesman Kim Min-Seok. "The atmosphere was serious, and there were no political arguments from the two sides."

AFP