last week the hotline between the neighbours was restored after being suspended for almost two years.

Seoul's five-member delegation, led by unification minister Cho Myoung-Gyon, travelled to Panmunjom in a convoy of vehicles, passing a group of well-wishers holding a banner at a checkpoint leading towards the DMZ.

The North's group, of similar size and led by senior official Ri Son-Gwon, walked over the Military Demarcation Line at Panmunjom for the talks, pictures showed -- just yards from where a defector ran across in a hail of bullets two months ago.

Looking businesslike, Cho and Ri shook hands at the entrance to the Peace House, the building on the southern side where the discussions were being held, and again across the table.

In accordance with standard practice in the North, Ri worea badge on his left lapel bearing an image of the country's founding father Kim Il-Sung and his son and successor Kim Jong-Il. Cho also wore a lapel badge, depicting the South Korean flag.

“Let's present the people with a precious new year's gift,” said the North's Ri. “There is a saying that a journey taken by two lasts longer than the one travelled alone.” Cho told him that Seoul believed the Pyeongchang Games “will become a peace Olympics as most valuable guests from the North are going to join many others from all around the world”.

“The people have a strong desire to see the North and South move toward peace and reconciliation,” he added.

It was a radically different tone from the rhetoric of recent months, which have seen