SEOUL, South Korea (AFP) – South and North Korea will resume talks to discuss revitalizing a Seoul-funded joint industrial estate despite tension over days of a border artillery fire, officials here said Sunday.

They will meet in the Kaesong estate, just north of the heavily fortified border, on Monday for a follow-up to talks that ended in failure on January 21, the South's unification ministry said. The North at the weekend informed the South of its participation in the talks, approving a plan by southern delegates to cross the border into Kaesong, it said.

Previous talks broke down as Pyongyang insisted on discussing a sharp pay increase for 42,000 North Koreans working for 110 South Korea-funded plants in Kaesong, which Seoul still refuses to discuss.