>> It's the world's most heavily militarized border, but lately the vehicles crossing through here from North Korea to the South are filled with athletes, cheerleaders, and musicians. The Olympics has brought about a calm at the Korean demilitarized zone, a stark shift from high tension here after a North Korean solder's dramatic escape last year.
Both sides have put a pause on any major drills, and most importantly, North Korea hasn't had a missile test in months.>> I'm Reuters' Grace Lee at the Korean Border, and what you see behind me here is North Korean land. Now this area has been largely quiet for the Olympics.
North Koreans have been on their best behavior, and military personnel tell me that there have been fewer security incidents. But the military forces on the south side are preparing. They are ready to go if any incidents occur along the border.>> Still soldiers and tour operators say lower tensions at the DMZ, plus the Olympics, have led to more tourists and VIP visits.
Tours are up 20% to 30% for this time of year. That's good news for the South. They want to use the Olympics to re-engage with the North. And UN command troops at the border are cautiously optimistic.>> The fact that the two sides are talking at the intergovernmental level is encouraging.
So we're hoping that the spirit that's been generated there will lead to maybe more talks. And, from our point of view, if there's military, if it led to military talks or re-opening of the transport corridors, that would be fantastic.>>
Thursday, things were less low key north of the border.
Pyongyang held an annual parade to celebrate the founding of its army. Displays included tanks and goose-stepping soldiers. It had been moved from April, a move that sparked backlash from the United States.