SEOUL - Russian President Vladimir Putin touted Moscow's role in forging peace between North and South Korea Tuesday, offering cash for a railway from the inter-Korean Cold War frontier to the trans-Siberian, AFP reported.

After a summit with South Korean President Kim Dae-Jung, the Russian leader argued that regional economic cooperation would provide the key to bringing the isolated communist regime in Pyongyang in from the cold.

"The (railway) project, if realized, would make the policies of the countries in this region more transparent and predictable because they will be inter-linked," Putin told a joint news conference.

"It is just one of multinational projects that Russia is proposing for our neighbors, for the Republic of Korea and the DPRK (Democratic People's Republic of Korea)," he added.

The Russian leader earlier told business leaders that Moscow was willing to invest "a few hundred million dollars" in improving the decrepit Soviet-built railway network in the North.

Putin, who is pursuing a drive to win back Moscow's influence in Asia lost since the 1991 collapse of the Soviet Union, urged the outside world to respond positively to North Korea's diplomatic push aimed at ending its isolation.

Kim welcomed Putin's engagement in Korean affairs. A joint statement issued by both leaders said Kim "positively appreciated" Russia's constructive role for peace and stability on the divided peninsula, according to AFP.