South Korean President Roh Moo-hyun has said he is pleased with the results of historic talks with North Korean leader Kim Jong-il in Pyongyang.
It was all smiles when Kim Jong-il (r) welcomed his guest to talks
Mr Roh said he was "satisfied with the outcome" and that the two sides were drafting an agreement for the end of the three-day summit on Thursday.
It is only the second-ever meeting between the leaders of the two Koreas, which are still technically at war.
They were expected to discuss disputed sea boundaries and economic ties.
Mr Roh said earlier that he hoped the summit would ease tensions between the two countries, but correspondents said expectations for progress were modest.
Mr Kim had proposed earlier on Wednesday that Mr Roh stay on in the North for an extra day.
South Korea media reports say Mr Roh turned down Mr Kim's offer.
However, after the second day of talks ended, Mr Kim said the discussions had been adequate and that the summit would be concluded as planned, reports said.
Little information has been released about the subjects under discussion, but it is thought talks will touch on the location of sea boundaries, a contentious issue left over from the 1950-1953 conflict.
During a break in talks on Wednesday, Mr Roh described his morning session with Mr Kim as "honest and frank" but said that the two sides must learn to trust each other.
THE TWO KOREAS
1910: Korean Peninsula colonised by Japan
1945: Divided into US-backed South and Soviet-backed North
1950-1953: Korean War, no peace deal signed
1987: North Korea bombs a South airliner, killing 115
1990s: South Korea introduces conciliatory Sunshine Policy
2000: Kim Jong-il and Kim Dae-jung hold first leaders' summit
2007: Kim Jong-il and Roh Moo-hyun hold second leaders' summit
He said Pyongyang was dissatisfied with the speed of development of a joint industrial park run by the South in Kaesong.
Mr Roh also said the North expressed regret that the international stand-off over its nuclear weapons programs had prevented greater economic co-operation with the South.
North Korea's nuclear programme is the subject of separate international six-party talks.
In a development on Tuesday, the US said it has approved an agreement over North Korea's nuclear weapons that would see its main nuclear facility disabled by the end of the year.
Mr Kim appeared upbeat when the two leaders met on Wednesday, smiling repeatedly as he received a gift of 150 South Korean DVDs.
South Korea had earlier denied that President Roh was given a cool reception by Mr Kim, who appeared dour and unsmiling when he welcomed the South Korean leader on Tuesday.
Millions of people died in the 1950-53 Korean war, a civil conflict which drew in several bigger powers and has never been formally ended.
Seoul has promoted hopes for a permanent truce while North Korea's avowed aim is reunification.