Compromises were made on both sides
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North and South Korea have signed a deal including specific measures to avoid armed clashes along their border.
The South Korean defence ministry said there would be a telephone hot-line to discuss fishing near the disputed sea border - a frequent source of tension.
Both sides also agreed to a common system of flags and warning systems, and the end of propaganda broadcasts.
The pact ended three days of talks, and followed an accord between generals from both sides last week.
South and North Korean naval ships have fought fierce gun battles at this time of year as the lucrative crab fishing season gets under way.
The clashes have usually occurred when fishing boats from one side crossed the unmarked border off the west coast while chasing fish, correspondents say.
Under the accord, signed on Saturday, guard posts, navy vessels and patrol boats will open radio communication networks and exchange information on poachers.
The two sides also agreed to end propaganda broadcasts from midnight on Monday, and remove all signboards and other propaganda material along the land border.
Breakthrough
The agreement was signed after talks between military officers at North Korea's Kaesong city near the border.
It is a follow-up to last week's landmark talks, where generals agreed in principle measures to ease tensions along the world's last Cold War frontier.
The BBC's Charles Scanlon said at the time the agreement would be seen as a breakthrough by the South Korean government, which has been pursuing a policy of reconciliation with the North.
Until recently, North Korea had refused to discuss highly sensitive security issues, preferring to concentrate on improving economic relations.