South Korea and the Democratic People's Republic of Korea (DPRK) have agreed to hold the second Inter-Korean Summit in Pyongyang in late August, said an official of the Presidential Office on Wednesday.

Under an agreement between South Korean President Roh Moo-hyun and DPRK top leader Kim Jong-il, the two leaders will hold the second Inter-Korean Summit in Pyongyang on Aug. 28-30, said Baek Jong-chun, national security adviser to Roh Moo-hyun, at a news conference held in the Presidential Office.

The two sides will launch preliminary meeting in DPRK's Kaesung city as soon as possible to prepare for the summit, said Baek.

In a statement by the South Korean government, South Korea said the upcoming summit will be a significant opportunity to promote the inter-Korean relationship and boost peace and mutual prosperity on the Korean Peninsula.

According to Roh's spokesman Cheon Ho-seon, Roh and Kim will discuss agendas including the denuclearization of the Korean Peninsula, inter-Korean peace, arms control and cross-border economic cooperation during their summit.

Earlier on the day, at a Security Policy Coordination Council at the Presidential Office, Roh expected the upcoming inter-Korean summit can help normalize inter-Korean ties.

"The second inter-Korean summit will help normalize inter-Korean relations and provide fresh momentum to improve the North (DPRK)'s relations with international society," Roh said.

Roh also expects his meeting with Kim would pave the way for "regularizing and institutionalizing" inter-Korean summit talks, Cheon said.

"Two Koreas came to share the common understanding that August is the most opportune time for an inter-Korean summit," Cheon said, adding that the U.S., Japan and other concerned countries were given advance notice prior to the formal announcement of the summit schedule.

Following the announcement of the summit, the benchmark Korea Composite Stock Price Index (KOSPI) closed up by 43.59 points, or 2.34 percent, to 1,903.41 as investor sentiment was bolstered by the news.

Former President Kim Dae-jung, who launched a historic visit to Pyongyang in June 2000 and held the first-ever Inter-Korean Summit with Kim Jong-il, hailed the upcoming second round of inter-Korean summit. The new summit will be helpful to the exchange and cooperation between South Korea and DPRK, he said.

Editor: Donald