Marking the second anniversary of the Paumunjeom Declaration, the South Korean government has been celebrating the Donghae Northern Line reconstruction project.
The project aims to reconnect Gangneung and Jaejin, a city near the North Korean border, with a rail line.
The two cities had been linked by rail, but the connection was severed 53 years ago.
During Monday's event, Seoul's Unification Minister Kim Yeon-chul said the project will revitalize the Korean economy.
He said the railway connecting Gangwon-do Province with metropolitan areas will foster tourism and upgrade the country's transportation infrastructure.
The South Korean government has pledged to cooperate closely with local communities to aim for construction to start by the end of 2021.