About 100,000 North Koreans have rallied in the capital Pyongyang in support of leader Kim Jong-il and his regime.
The event began with a hymn to Mr Kim and was broadcast on state television.
The ABC reports it was held to show support for new policy guidelines outlined in the regime's official New Year's message, in which it called for co-operation and dialogue with the South.
President Lee Myung-bak of South Korea responded by saying Seoul is open to talks and closer economic co-operation if Pyongyang abandons its military adventurism.
