South Korea will consider a proposal from Pyongyang for joint research into volcanic activity in the peninsula's highest mountain, potentially a rare cross-border project, Seoul said Friday. The South's unification ministry, which handles cross-border relations, said discussions were under way among government agencies over whether to accept the proposal issued Thursday for joint research on Mount Paektu. "Our government understands that there must be inter-Korean cooperation as far as natural disasters are concerned," ministry spokesman Chun Hae-Sung told reporters. The North's earthquake bureau said the two countries should jointly research the mountain on the border between North Korea and China given last week's devastating quake and tsunami in Japan. Since its last eruption in 1903, the 2,740-metre (8,990-foot) mountain has been inactive. But experts say the it may have an active core, citing topographical signs and satellite images. The mountain contains nearly one billion tonnes of water, which could deluge surrounding areas and spark chaos in North Korea. Relations between North and South have been icy since the South accused the North of torpedoing a warship in March 2010 with the loss of 46 lives. Pyongyang denies the charge, but went on to shell a South Korean island -- killing four people -- in November.