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North and South Korea are to hold top-level talks amid growing tension, the South's presidential office has said. Senior aides to the two countries' leaders will meet at the Panmunjom truce village on the border at 0900 GMT, the Blue House said.

North Korea had threatened "strong military action" if the South did not stop border loudspeaker broadcasts. Following an exchange of fire on Thursday, North Korea declared a "semi-state of war", state media reported.

South Korea said that it would be represented by national security adviser Kim Kwang-jin and Unification Minister Hong Yong-pyo, and the North would send senior officials Hwang Pyong-so and Kim Yong-gon, BBC reports.

North Korea had earlier issued a deadline for the dismantling of banks of loudspeakers, which have been blasting news bulletins, weather forecasts and music from the South. It had moved artillery into positions to fire on them.

South Korea has evacuated almost 4,000 residents from border areas and warned that it would "retaliate harshly".

US and South Korean fighter jets have been flying in formation near the border.

The two Koreas remain technically at war, because the 1950-1953 conflict ended in an armistice, not a peace treaty.