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Which sentence is correct 1) With North Korea and South Korea agreeing to resume the talks, chances of peace flourishing in the region have once again revived.

2)With North Korea and South Korea's agreeing to resume the talks, chances of peace flourishing in the region have once again revived.

=> Mind the only difference between the two is a little apostrophe after the word "korea"

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"Agreeing" is not a noun so you cannot use possessive with it therefore the second variant is not correct.

You could use "agreement" instead; then it would be okay.

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