SEOUL - Top aides to the leaders of North and South Korea held talks at the Panmunjom truce village straddling their border late on Saturday, raising hopes for an end to a standoff that put the rivals on the brink of armed conflict.

The meeting at the Demilitarized Zone (DMZ) village, known for its sky-blue huts and grim-faced soldiers, began soon after the deadline for North Korea's previously set ultimatum demanding that the South halt its loudspeaker propaganda broadcasts along the border or face military action.

That deadline passed without any reported incidents.

The negotiations continued after roughly three hours, according to the South's Unification Ministry.

An exchange of artillery fire on Thursday prompted calls for calm from the United Nations, the United States and the North's lone major ally, China. South Korea's military remained on high alert despite the announced talks, a defense official said.(Reuters)