Seoul promised it could take its own "grave measures" if Pyongyang rejects talks on a jointly run factory park that has been shuttered for nearly a month.
Warning of the possibility of a new arms race in the region, analysts said negotiations are the way to ease tensions on the Korean Peninsula.
The United States and its allies may boost their military presence in the Asia-Pacific region, citing Pyongyang's nuclear test, analysts said.
Japanese authorities were shocked on Wednesday by the Democratic People's Republic of Korea's satellite launch, despite the fact that there was no damage and no debris fell on Japan.
Pyongyang on Monday extended the period for its planned rocket launch by a week to Dec 29 because of technical problems.
DPRK rocket launch
The DPRK's satellite launch plan has triggered concerns from the US and its major allies in Asia, who condemn it as "provocation".China concerned about satellite launch Special: DPRK rocket launch
Pyongyang marked the centenary birthday of founder Kim Il-sung on Sunday with a massive parade and glorious riverside firework display.
The most important day for hundreds of foreign reporters coming to Pyongyang proved to be frustrating for most of us.
China has done much to soothe the concerns aroused by the DPRK's satellite launch and has sought opportunities to restore talks among various parties.
The Republic of Korea condemned the rocket launch as a provocative threat to peace and stability in Northeast Asia.
China has called for restraint after a failed satellite launch by the Democratic People's Republic of Korea on Friday morning.Int'l reactions Reporter's log
The Democratic People's Republic of Korea's official TV station announced Friday noon that the satellite they fired Friday morning did not enter the preset orbit.ROK: DPRK rocket launch failed
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