SEOUL, South Korea — North and South Korea have agreed in a rare high-level meeting to hold reunions of Korean War-divided families as planned despite a dispute over upcoming U.S.-South Korean military drills.

Chief South Korean delegate Kim Kyou-hyun said North Korean officials at the talks Friday withdrew their insistence that the reunions be delayed because of the drills.

North Korea says the drills are a rehearsal for invasion, while the allies say they are defensive in nature.

Kim said the Koreas also agreed to stop insulting each other. North Korea is sensitive about any criticism of its authoritarian leadership.

Impoverished North Korea has recently been pushing for better ties with Seoul. Analysts say it needs better relations to help it win outside investment and aid.