Koreas sign industrial park deal

The two Koreas have signed an agreement giving the go-ahead for South Korea to build an industrial park in the North.

After three days of talks, the two governments said construction work would begin at the border town of Kaesung next month.

The first phase is due to be completed by the end of next year.

North Korea has agreed to designate the area a special economic zone, giving foreign companies a free hand there.

A plan for a similar zone on North Korea's border with China has faltered, following the arrest in China of the man appointed to head it.

In a separate development, South Korean Red Cross officials say they and their northern counterparts have failed to agree on arrangements for another round of reunions of separated families.

The North is said to be insisting that a permanent reunion centre being built in North Korea be completed so that future such meetings can be held there.

From the newsroom of the BBC World Service