Seoul: North Korea has stepped up the rhetoric against South Korea and the US, as high-level military officials from the North and the US-led UN Command hold talks at the border.

According to the state-run Korean Central News Agency, Yang Hyong Sop, vice president of the parliament, told a Pyongyang forum, "If the US warlike forces opt for reckless military confrontation and provocation of a war of aggression against (North Korea), the latter will mercilessly stamp out aggressors."

The warning also comes as the US and South Korea prepare for next week's annual military exercises.

Meanwhile, South Korea's new unification minister, Hyun In-taek, said on Monday Seoul is ready for dialogue with Pyongyang to improve the "difficult" ties between the neighbouring nations.