North Korea agreed to resume the six way talks on its nuclear weapons program and economic aid in return. The north is playing a dangerous game, as it wants the aid, but refuses to consider any fundamental reform. The Chinese have been urging reforms similar to those in China (economic freedom, but the Communist Party still in control.). But the North Koreans fear a rebellion if they tried this (because the northern people would find out about the prosperous south and question the competence of the northern leadership.)
A South Korean navy ship fired warning shots at a North Korean warship that wandered into South Korean waters in the Yellow Sea. The northern ship did not return fire and turned around. It was apparently an accident.