Seoul will aim to strike a deal with Pyongyang some time this year on building a peace park in the Demilitarized Zone separating the two Koreas.
The Unification Ministry made the announcement on Thursday as part of its key policy plans for the year during a joint policy briefing session with President Park Geun-hye.
The plan, first proposed by President Park last year, aims to create a peace park, marked in yellow, in the four-kilometer-wide buffer border zone.
The project was proposed with an aim of improving relations with North Korea.
The ministry for inter-Korean affairs also announced plans to push forth a so-called "Eurasia Initiative" that calls for linking energy and logistics infrastracture across the continent.
The ministry said it will explore measures to renovate a 54-kilometer track connecting North Korea's port city of Rajin and Russia's eastern border town of Khasan.
Through the project, Seoul wants to ultimately build a distribution channel that runs from South Korea's southernmost port city of Busan through North Korea and to Russia.
Moves for the project have been under way since November, when President Park met with Russian President Vladimir Putin and signed a memorandum of understanding that will help South Korean companies take part in the railway revitalization project.
The unification ministry also announced it will look into businesses that could enhance cultural understanding between the two Koreas, by working in various areas, including sports and arts.
The ministry emphasized however, that it will also dedicate equal efforts to denuclearizing North Korea, while trying to improve relations with its northern neighbor.
Yoo Li-an, Arirang News.
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