Top leader of the Democratic People's Republic of Korea (DPRK) Kim Jong Il (R) and South Korean President Roh Moo-hyun pose after they exchanged the document in Pyongyang, capital of DPRK, Oct. 4, 2007. The Declaration for the Development of Inter-Korean Relations, Peace and Prosperity was signed at the Paekhawon State Guesthouse at 1:00 p.m.(0400 GMT), said the news release. (Xinhua Photo)
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    PYONGYANG/SEOUL, Oct. 4 (Xinhua) -- The agreement reached between the top leaders of South Korea and the Democratic People's Republic of Korea (DPRK) at their summit in Pyongyang will increase cooperation between the two sides and add momentum to efforts to achieve peace and denuclearization on the Korean Peninsula, analysts said Thursday.

    Since the first inter-Korean summit seven years ago, economic and tourism projects have been launched, including an inter-Korean industrial complex in the DPRK's border city of Kaesong and tours of the scenic Mt. Kumgang.

    But the two Koreas, technically still in a state of conflict, need a permanent peace treaty to formally end the 1950-53 Korean War, which ended in a truce.

    South Korean President Roh Moo-hyun, who traveled overland to Pyongyang for the three-day visit, and DPRK top leader Kim Jong Il reaffirmed their commitment to promoting peace on the peninsula and economic cooperation between the two sides.

Top leader of the Democratic People's Republic of Korea (DPRK) Kim Jong Il (R) and South Korean President Roh Moo-hyun (L1) hold talks during their meeting in Pyongyang, capital of DPRK, Oct. 3, 2007. The two sides concluded their first round of formal summit talks in Pyongyang Wednesday morning. (Xinhua Photo)
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    The eight-point declaration they issued on Thursday calls for an end to the military hostility between the two sides and a three- or four-party summit on a permanent peace treaty on the Korean Peninsula.

    They have agreed to hold talks between their prime ministers and defense ministers in the near future, the declaration said.

    They also agreed to expand cross-border investments and economic cooperation projects and create a special peace zone in the West Sea (Yellow Sea).

    The two sides will work together to open a direct air route between Seoul and the DPRK's Mt. Paektu and operate railways linking South Korea and the DPRK to China during the 2008 Olympic Games in Beijing, the document said.

    Other plans include construction of a joint shipbuilding complex in the port city of Nampo, near Pyongyang, and a cross-border cargo railway.

Kim Jong Il (R, Centre), top leader of the Democratic People's Republic of Korea (DPRK), Kim Yong Nam (L, Centre), president of the Presidium of the DPRK Supreme People's Assembly, hold a welcoming ceremony for Roh Moo-hyun (Centre), president of the Republic of Korea (ROK), on the Square of April 25 Cultural Hall in Pyongyang, capital of DPRK, Oct. 2, 2007. (Xinhua Photo)