The two Koreas agreed on Monday to march together under a unified peninsula flag and form combined teams to compete in the next Asian Games, they said in a joint statement, in the latest sign of a thaw between the old rivals.

Both sides also agreed at a round of talks on their heavily fortified border to hold a basketball match in the North Korean capital of Pyongyang on July 4, marking the anniversary of an inter-Korean agreement on unification, they said.

The agreement comes amid a range of talks as part of efforts to promote reconciliation, including opening military hotlines and arranging reunions for families of Koreans divided by the 1950-53 Korean War.

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