North Korean officials are set to meet Wednesday with representatives of South Korean companies, amid a dispute over wages at a jointly run industrial complex.
Pyongyang is trying to unilaterally raise wages for North Korean workers at the Kaesong Industrial Complex, which lies just north of the two countries' tense border. Seoul objects, saying such a move must be agreed to by both sides.
Chung Ki-sup, the head of the council of South Korean businesses in Kaesong, said he believes the dispute can be resolved through dialogue. The two sides are meeting at Kaesong.
Last month, Pyongyang notified Seoul of its decision to raise the minimum monthly wage for its workers from $70.35 to $74.00 starting in March.
More than 53,000 North Korean workers are employed by about 120 South Korean factories in the park, which is one of the few areas of North-South economic cooperation.