South Korea and North Korea are holding their first high-level talks in nearly a year in a bid to defuse mounting tensions that have led to the brink of a military confrontation.

South Korea has proposed talks with North Korea to discuss what it calls a range of issues needed to prepare for the unification of the divided countries.

North Korea has delivered a fresh round of rhetoric with claims it had “powerful striking means” on standby for a launch, while Seoul and Washington speculated that the country is preparing to test a medium-range missile during upcoming national celebrations.

United Nations Secretary-General Ban Ki-moon has urged North Korea not to carry out a new nuclear test, saying it would be a “provocative” act amid soaring tensions on the Korean peninsula.

There is an indication that North Korea is preparing for a fourth nuclear test, South Korea has said.