SEOUL (Reuters) -- North and South Korea agreed Monday to begin reconnecting rail and road links, another step in an improving relationship that has raised U.S. concern about the possible undermining of its bid to press the North to give up its nuclear program.
The agreement on transport links came during talks in the border village of Panmunjom, aimed at following up on the third summit this year between South Korea's President Moon Jae-in and North Korean leader Kim Jong Un, last month.
"The South and North reached the agreement after sincerely discussing action plans to develop inter-Korean relations to a new, higher stage," said a joint statement released by the South's Unification Ministry.
They agreed to hold ceremonies in late November or early December to inaugurate work on reconnecting the railways and roads that have been cut since the 1950-53 Korean War.
The two sides will carry out joint field studies on the transport plans from late this month, according to the joint statement.
They also agreed to discuss late this month a plan to pursue a bid to co-host the 2032 Olympic Games.
The talks were led by the South's Unification Minister Cho Myoung-gyon and Ri Son Gwon, chairman of the North's committee for peaceful reunification that handles cross-border affairs.
"We are at a very critical moment for the denuclearization of the Korean peninsula and the advancement of inter-Korean relations, and there's also a second North Korea-U.S. summit coming up," Cho told reporters before leaving for Panmunjom.
Talks between the two Koreas are running in parallel with U.S. efforts to press North Korea to give up nuclear weapons and missiles that the North says can hit the U.S. mainland.
Kim held an unprecedented summit with U.S. President Donald Trump in June in Singapore and the two sides are arranging a second meeting, which Trump said would likely happen after U.S. congressional elections on Nov. 6.
But despite the meeting between Kim and Trump, the United States is still pursuing a policy of "maximum pressure" to get North Korea to give up its nuclear weapon and ballistic missile programs.
Trump said on Wednesday South Korea would not lift sanctions on North Korea without U.S. approval.
The rail and road initiative and the joint Olympics bid were agreed by Moon and Kim at their latest summit, in the North Korean capital, Pyongyang.