Wrapping up three days of talks in Pyongyang, leaders of the two Koreas have agreed to try to put a final end to the last conflict of the Cold War.
The two countries are still technically at war since a ceasefire ended the fratricidal conflict which left them divided in 1953.
Both have agreed to push for talks next month with mediators China and the US to reach a peace deal.
The two countries also agreed to resume regular freight train service across their heavily fortified border for the first time in half a century.
The summit ended just a day after Pyongyang agreed to disable its main nuclear facilities and openly declare all its nuclear activities by the end of the year in exchange for more badly-needed aid.
While Washington has praised the move, it is still demanding Pyongyang give up all nuclear activity – a move analysts say would be an extremely high price to pay for North Korea which sees nuclear armament as its only leverage to deal with a hostile world.
As a farewell ceremony was underway in the North Korean capital, protestors in Seoul demonstrated against president Roh Moo-Huyn’s visit to the North and criticised his reluctance to challenge Kim Jung-Il on his country’s human right’s record.
But analysts say a collapse of the North would be so catastrohpic for wealthy South Korea that it is prepared to pump billions of dollars into its neighbour’s economy.