But experts here were cautiously optimistic of the results of the negotiations.

"I think the outlook is not that bad. At least a deal between South and North Korea can be reached to reduce military tensions," said Kim Yong-hyun, a professor at Dongguk University.

"(Inter-Korean) contact this time is meaningful in that it is cooling tension for a moment."

Kim Young-soo, a professor at Sogang University, said the two sides have effectively ended the latest standoff by holding a high-profile meeting.

"If one side uses fire, it will be fully to blame," he said.

Propaganda broadcasts have become a bone of contention between the two Koreas after South Korea resumed them earlier this month for the first time in 11 years.

South Korea took the measure in retaliation against North Korea for a recent land mine attack that maimed two South Korean soldiers. South Korea accused the North of planting the mines inside the Demilitarized Zone that separates the two Koreas, a charge denied by North Korea.

North Korea views the psychological warfare critical of North Korean leader Kim Jong-un as an insult to its dignity. The isolated country is also concerned that an influx of outside information could pose a threat to Kim.

Tension between the Koreas has risen further since Thursday's exchange of artillery fire.

The North fired one artillery shell across the border in the afternoon before firing several more rounds later in apparent anger over South Korea's resumption of the broadcasts. South Korea fired back dozens of shells.

The North later claimed it didn't start Thursday's exchange of fire with the South and accused Seoul of fabricating the allegations that the communist nation fired first. (Yonhap)