South Korea said it is ready to start talks with North Korea on further developing a jointly run industrial estate despite simmering political tensions.
The unification ministry, which handles cross-border affairs, on Wednesday said it would "seriously consider" holding dialogue about the estate in Kaesong just north of the heavily fortified border.
"We hope North Korea will respond in a positive and sincere manner," said spokeswoman Park Soo-Jin.
She said the South would decide when to send an official proposal for talks by considering the overall state of cross-border ties.
Pyongyang's new leaders have vowed never to have dealings with the current Seoul government.
They accuse it of disrespect during the mourning period for the North's leader Kim Jong-Il, who died on December 17 and was succeeded by his son.
Pyongyang has not so far responded to two earlier proposals by Seoul for dialogue.
Last week the South called for talks about a possible joint pest control exercise near ancient tombs, which became the North's first UNESCO World Heritage site in 2004.
On Tuesday Seoul proposed talks on restarting a reunion programme for families separated during the 1950-53 war.
The Kaesong estate has served as a legitimate source of hard currency for the impoverished North since it opened in 2004.
More than 50,000 North Koreans, mostly women, work for South Korean firms producing clothes, utensils, watches and other items. Last year production was worth a record $400 million.
Company owners want Seoul to ease restrictions on the number of workers and on bank loans and to improve facilities.
"Our government is ready to reach a comprehensive agreement on pending issues about the Kaesong industrial park," spokeswoman Park said.
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