NATO called a new offensive against the Taliban in the infamous opium-producing area, Kandhar province, in southern Afghanistan.
Air strikes and clashes in southern Afghanistan killed more than 75 militants, Taliban spokesman said the talks were in the "final stage."
Afghan and US-led coalition troops called in the air strikes after being ambushed by militants in southern Helmand Province, killing at least 36 insurgents on Monday but no Afghan or coalition troops were injured.
In Uruzgan Province, police embattled for three days with militants blocking the road leading to Kandahar Province, leaving 26 militants and two policemen dead, said Wali Jan, the Uruzgan deputy highway police chief.
Another 13 suspected militants were killed in Kandahar Province, the Defense Ministry said in fierce battles took place in most dangerous parts of Afghanistan.
Violence has risen sharply in Afghanistan in the last two months.
More than 3,500 people, mostly militants, have been killed in insurgency-related violence this year,the figures provided by Western and Afghan officials.
Ghazni province, Korean negotiators, accompanied by Afghan elders and clerics, met the kidnappers in person, said a provincial official.
Twenty three South Korean hostages, including 18 women, were kidnapped last Thursday while riding a bus through Ghazni province on the Kabul-Kandahar highway
Qari Yousef Ahmadi, the purported spokesman, said the militants wanted 23 Taliban prisoners released for the lives of the hostages.
Afghan government hadn't responded to any of its demands and that between 11:30 a.m. and 2 p.m. the militants would kill "a few" of the hostages.
Islamic militants who are holding 23 Christian aid workers from South Korea accused President Hamid Karzai's government for being dishonest in talks to win the release of the captives.
"The Kabul administration is not honest in negotiations. We have given them the list of eight Taliban prisoners for exchange (for eight Koreans) but they are dealing with the issue carelessly," Ahmadi Taliban spokesman said.