North Korean leader Kim Jong-un has delivered a New Year's speech saying he is open to more talks with Seoul or even a summit with his South Korean counterpart.
But Kim stressed North Korea will continue to strengthen its military amid an atmosphere of distrust and tension while trying to diversify its economy and raise the national standard of living.
His call for improving inter-Korea relations comes as Pyongyang is facing heightened criticism over its human rights record.
North Korea also has souring ties with Washington over allegations it was involved in the massive hacking attack on Sony Pictures.
The allegation has caused major economic damage to the company and clouded the release of "The Interview," a dark comedy that portrayed an assassination attempt on Kim.
North Korea has denied involvement, but said the hack was a "righteous deed" and suggested it might have been carried out by sympathisers or supporters abroad.
"We believe we can resume suspended senior-level talks and hold other talks on specific issues if South Korea sincerely has a position that it wants to improve North-South relations through a dialogue," Kim said in the nationally televised speech.
"And there is no reason not to hold the highest-level talks if the atmosphere and conditions are met."
Meeting such conditions has proven to be virtually impossible in the past.
The two countries have not held a summit since 2007 and, despite Kim's remarks, the likelihood of one happening again soon is very low given the deep distrust that remains between the two countries.
However, the South responded positively to the news today.
"Our government hopes South and North Korea will hold dialogue without formality in the near future," Ryoo Kihl-Jae, the South's unification minister in charge of inter-Korean affairs, told a briefing.
"The government takes (Kim's message) as meaningful as it showed an advanced attitude towards inter-Korean dialogue and exchanges."
Seoul is waiting for the North to respond to its earlier proposal to hold talks this month to discuss a range of issues needed to prepare for the unification and other issues of mutual concern.
South Korea made the proposal earlier this week.
In his speech, Kim noted that this year is particularly significant because it marks the 70th anniversary of Korea's liberation from Japanese colonial rule.
Both sides claim to hold reunification as a fundamental goal.
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