A rush of diplomatic contacts between the two Koreas and the US, plus a shipment of food aid from the South on Tuesday, raised hopes for a resumption of long-delayed aid-for-denuclearization talks.

Seoul had proposed a new round of dialogue for Friday to discuss Pyongyang's threat to strip a South Korean company of its assets at the resort, and added it was also willing to discuss a resumption of tourism links.

The DPRK said in a letter to the unification ministry, the office that deals with inter-Korean affairs in Seoul that it agreed to hold working-level talks on the condition that the Republic of Korea brings private businessmen.

"But if the South does not bring businessmen or uses the talks for the purpose of interfering with negotiations on asset settlement, talks will be unnecessary and firm action on legal disposal of South's real estate in Kumgang will be taken," the ministry quoted the letter as saying.

Reuters