The Democratic People's Republic of Korea (DPRK) said Tuesday the wage increase was a key problem for the Inter-Korean joint industrial complex in the border town of Kaesong, the official news agency KCNA reported.

At the working-level talks on operations at the Kaesong industrial complex, the DPRK proposed to discuss wage increases first, while South Korea refused the proposal insisting on discussing transportation, communications, the customs system and accommodations for workers, the KCNA said.

The DPRK requested South Korea change its attitude and agree to hold military talks as soon as possible at which they could talk about transportation, communications and the customs system at the joint park, along with accommodations for workers.

Both parties said they agreed to continue the working-level talks in the future and discuss pending issues. But the report did not give a specific date and place for the talks.

The talks were the first inter-governmental meeting this year between Pyongyang and Seoul.

The two sides held a three-day assessment meeting in Kaesong last month to discuss how to improve the operations of the industrial park, but did not reach an agreement on impending agendas.

The industrial park, which is under the joint management of the two sides, has been one of the key symbols of economic cooperation between DPRK and South Korea, though worsening ties between the two sides have occasionally put operations there in danger.

Currently, some 110 South Korean companies are based in the complex, employing about 42,000 workers from the DPRK mostly producing labor-intensive goods.