<P> The June 15, 2000 Joint Declaration that the two leaders signed during the first South - North summit stated that they would hold the second summit at an appropriate time . It was originally envisaged that the second summit would be held in South Korea, but that did not eventuate . South Korean President Roh Moo - hyun walked across the Korean Demilitarized Zone on October 2, 2007 and travelled on to Pyongyang for talks with Kim Jong - il . The two sides reaffirmed the spirit of the June 15 Joint Declaration and had discussions on various issues related to realizing the advancement of South - North relations, peace on the Korean Peninsula, common prosperity of the people and the unification of Korea . On October 4, 2007, South Korean President Roh Moo - hyun and North Korean leader Kim Jong - il signed the peace declaration . The document called for international talks to replace the Armistice which ended the Korean War with a permanent peace treaty . </P> <P> During this period, the political developments were reflected in art . The films Shiri, in 1999, and Joint Security Area, in 2000, gave sympathetic representations of North Koreans . </P> <P> The Sunshine Policy was formally abandoned by the new South Korean President Lee Myung - bak in 2010 . </P> <P> On March 26, 2010, the 1,500 - ton ROKS Cheonan with a crew of 104, sank off Baengnyeong Island in the Yellow Sea . Seoul said there was an explosion at the stern, and was investigating whether a torpedo attack was the cause . Out of 104 sailors, 46 died and 58 were rescued . South Korean President Lee Myung - bak convened an emergency meeting of security officials and ordered the military to focus on rescuing the sailors . On May 20, 2010, a team of international researchers published results claiming that the sinking had been caused by a North Korean torpedo; North Korea rejected the findings . South Korea agreed with the findings from the research group and President Lee Myung - bak declared afterwards that Seoul would cut all trade with North Korea as part of measures primarily aimed at striking back at North Korea diplomatically and financially . North Korea denied all such allegations and responded by severing ties between the countries and announced it abrogated the previous non-aggression agreement . </P>

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