AHC: Cordial relations between the Koreas

You challenge is to have normalised and cordial relations between North and South Korea. At the very least this must mean a formal peace treaty, recognition, and embassies. Bonus points if they form a custom's union and/or have an open and a completely demilitarised border. The Korean War must happen as ITOL, and the two cannot be reunified as of 2017, although reunification can be a likely outcome in the near future.
 
Sometime in the 1970s the Russians get fed up with Kim Jong Il ,the gold plated statue of himself almost did it in OTL.They replace him with somebody a little more realistic,and North Korea goes through reforms in the 80s and 90s.
 
I feel like this situation is a near impossibility. The concept of the two having a demilitarized border that's open and not united is impossible imo.

The best I got is that Kim Il-sung is beat out by the Pro-Chinese Ya'an faction, perhaps in a palace coup of some sort. Assuming the Soviets don't 'restore order' in North Korea, North Korea would fall into a Pro-Chinese orbit after the Sino-Soviet split (Perhaps the overthrow could be an aggravating factor? It might become formal sooner.) and would go through the motions of the Cultural Revolution and relations improve strongly during the Chinese detente with America. After Mao's death, the Maoist strongman that won out against papa Kim reforms slightly and manages to avoid overthrow because the Chinese aren't interested in North Korea's internal situation too much. The strongman dies likely in the late 80's or early 90's and is replaced with a younger, more reform minded party member. Under him they better relations even further and go under Xiaoping style economic reforms. That's the best I got.
 
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