South Korea's chief negotiator Chun Yung-woo said on Sunday the frozen funds of North Korea are expected to be resolved soon.

Chun made the remarks after an-hour-long meeting on the denuclearization working group in Beijing.

The denuclearization working group started its first meeting on Saturday at the Diaoyutai State Guesthouse in Beijing.

South Korea will provide the heavy oil to North Korea if the latter shuts down its nuclear facilities and accepts the nuclear inspectors, Chun told a press briefing on Sunday afternoon.

Yesterday's meeting did not touch upon substantial issues, Chun said.

(Xinhua News Agency March 19, 2007)