The meeting was to examine progress on the dismantlement of loudspeakers and other propaganda apparatus installed for the past 50 years along the world's last Cold War frontier.

"The talks will not take place as planned because North Korea has not responded to our proposal," a ministry official told AFP.

Rear Admiral Park Jung-Hwa, South Korea's chief delegate to inter-Korean military talks, had expressed regret in a letter to his North Korean counterpart, the official said.

Last week South Korea's navy said a patrol boat fired warning shots at a North Korean vessel which intruded into South Korean waters near Yeonpyeong Island off the west coast in the Yellow Sea.

North Korea's navy denied the charge and accused the South's navy of spreading misinformation.

Following a landmark accord agreed last month, the two sides began dismantling propaganda apparatus and materials along the heavily fortified border from June 15.

The South and North Korean navies also agreed to open radio contact in the Yellow Sea to prevent accidental clashes.

South Korean military officials originally said the North's navy failed to communicate with South Korea at the time of the incident. They also accused the North of breaching the accord on establishing radio contact.

Belatedly, however, the defense ministry admitted that North Korea had established radio contact three times during the incident.

The defense ministry issed a report on the matter Monday to President Roh Moo-Hyun, the president's office said. Roh, however, called for a further investigation.

"It is an issue which can seriously affect relations between South and North Korea," Roh was quoted as saying.

North Korea has never accepted the sea border drawn at the end of the Korean War in 1953 and the disputed line has been the scene of repeated clashes. In June 2002, six South Korean sailors died in one incident.

WAR.WIRE