PYONGYANG - The Democratic People's Republic of Korea on Friday proposed holding working-level contacts with Republic of Korea in Kaesong on Sunday, the official KCNA news agency reported.

The proposal announced by a spokesman of the DPRK's Committee for the Peaceful Reunification of Korea came after it called for talks with?ROK's authorities on Thursday.

The spokesman also said the DPRK will reopen the Panmunjom Red Cross liaison channel from 2:00 pm (0500 GMT) on Friday.

"We appreciate the fact that the south side promptly and positively responded to the proposal made by us for holding talks between the authorities of both sides," he was quoted as saying.

The spokesman said that in view of the two sides' stalemated relations and increasing mistrust, working-level contacts between the DPRK and ROK are necessary prior to ministerial-level talks proposed by Seoul.

ROK said Thursday it wants to hold a ministerial-level dialogue with the DPRK on June 12 in Seoul in response to Pyongyang's proposal for holding official talks on reopening the Kaesong Industrial Zone.

Pyongyang shut down the industrial zone in early April and pulled out 53,000 DPRK workers. ROK also withdrew its workers starting on April 26 after Pyongyang rejected Seoul's proposal for working-level talks.

The Kaesong Industrial Zone, which is under the joint management of ROK and the DPRK and a key symbol of inter-Korean economic cooperation, is facing its worst crisis since it opened in late 2004.