North Korea's military paraded Thursday to mark the birthday of late leader Kim Jong-Il, pledging to defend his son and successor Jong-Un with their lives and crush enemy forces if attacked.

The death of North Korean leader Kim Jong-Il raised uncertainty but also opened a window for change in the communist state, South Korea's top official for cross-border ties said Wednesday.

South Korea said Friday it still wants dialogue with North Korea despite a series of strongly worded attacks from Pyongyang following the death of its leader Kim Jong-Il.

North Korea announced Thursday that the body of Kim Jong-Il will lie in state in perpetuity in a Pyongyang palace and memorial towers will be built nationwide, as part of plans to honour the late leader.

Members of North Korea's powerful military have held a rally to pledge loyalty to the country's new leader Kim Jong-Un, vowing to become "rifles and bombs" to protect him, official media said Tuesday.

Dozens of international rights groups urged North Korea's new leader in a open letter released Monday to improve human rights in the isolated state and build a different legacy than his late father.

The United States has urged China to stress the need for restraint to its North Korean allies as Pyongyang undergoes a leadership transition, a senior US diplomat said Thursday.

South Korea said Thursday it sees no major problems with the North's leadership transition and wants better ties with its neighbour, despite Pyongyang's fierce criticism of "traitors" in Seoul.

South Korea said Thursday it would set up a fund this year to prepare for eventual reunification with North Korea, as the death of the North's longtime leader Kim Jong-Il refocused attention on the issue.

South Korea sees an opportunity for better relations with North Korea as its new leader takes power, President Lee Myung-Bak said Monday, while vowing to respond strongly to any provocations.