South fires back at North over propaganda broadcasts at border.

North Korea has proposed working-level talks with the South as the rivals move to mend ties that have plunged during recent years amid hardline stances by both countries.

A factory complex that is North Korea’s last major economic link with the South was a virtual ghost town today after Pyongyang suspended its operations and recalled all 53,000 of its workers, cutting off jobs and a source of hard currency in its war of words and provocations against Seoul and Washington.

In a direct challenge to North Korean leaders, President Barack Obama implored them “to have the courage to pursue peace” while warning of the wrath of the world if they do not.

NORTH KOREA fired two shots toward South Korea at their tense border yesterday and opposing troops immediately fired back.

Military officials from North and South Korea failed to reach an agreement after two days of high-level talks, the South’s Defence Ministry said today.

NORTH Korea yesterday rejected US offers of dialogue and possible aid if it abandons its nuclear ambitions, calling them “pie in the sky” and a “deceptive drama” to appeal to public opinion.