South Korea says North Korea formally proposed talks over the possible demolition of South Korean-made hotels and other tourist facilities at the North's Diamond Mountain resort, which leader Kim Jong Un called "shabby" and "unpleasant-looking."

The North has expressed frustration that the South won't defy international sanctions and resume South Korean tours at the site.

Seoul's Unification Ministry said Friday it received a letter from the North proposing discussions on the issue through exchanges of documents.

Tours to Diamond Mountain were a major symbol of cooperation between the Koreas and valuable cash source for the North's broken economy before the South suspended them in 2008 after a North Korean guard shot and killed a South Korean tourist.