Regular rail service has begun between South and North Korea. For the moment, this is a single line with a single cargo train set to carry materials into the Bongdong area where a number of South Korean companies have production facilities in a special "industrial zone" at Kaesong. This BBC article discusses the new train, somewhat erroneously indicating that South Korean companies have gone to the North for "cheaper labor." As I understand it, the many costs associated with doing business within the quirky and odd confines of the North Korean industrial zone mean that it is actually more costly and less efficient to operate there. Companies that set up facilities in Kaesong did so with the understanding that they were acting to promote South-North links, rather than for strict economic benefits.
The South Korean government is looking for additional rail links, as well as passenger service between South and North. The former may come soon, but the latter seems less likely, at least as a regular thing. That said, it was possible back in the heyday of German separation for West Germans to travel into the East, as long as they were willing to surrender their passport for a while and sit through questioning and other indignities.
KCNA has no comment on the rail line just yet, although it does tell us that "The National Reunification Institute released an indictment on December 9 branding traitor Ri Hoe Chang as a fascist man-killer, separatist and confrontational maniac, kingpin of irregularities and corruption and human scum."
"Kingpin of irregularities" is an amazing title. Something to aspire to for the rest of us, perhaps. Incidentally, Lee Hoi Chang was the second-place finisher in the 2002 South Korean presidential election, finishing just over 2 percentage points behind current president Noh Moo-Hyun.