This announcement comes on the back of the Korean Peninsula Energy Development Organization (KEDO) - a US-led consortium in charge of building two nuclear reactors in North Korea - suspending all construction in retaliation for North Korea's atomic weapons programs. The KEDO suspension is seen as a major blow to an energy-starved North Korea that needs the two US$4.6 billion power plant projects to generate electricity.

According to Jeong, "restarting the project hinged on progress being made at planned international talks on the nuclear weapons standoff."

"The direction and content of the light-water reactor project will be decided not only through future six-nation talks, but through talks aimed at resolving North Korea's nuclear issue. There will be bright prospects for the project if relations between North Korea and the United States improve as an outcome of the talks," added Jeong.

The talks, which involve the US, Russia, China, Japan and the two Koreas, should take place next month. An earlier conference in August ended without any progress made.