One-hundred people from each country will be allowed to meet family members September 25-30 at North Korea's Diamond Mountain resort, South Korea's Unification Ministry, which is responsible for relations with the North, said in a statement.
Forty people from each side will also be allowed to hold talks by video conference on October 22 and 23, and the countries agreed to meet later to discuss possible November reunions.
Analysts say North Korea often follows provocations with charm offensives meant to win much-needed aid and diplomatic concessions.
Millions of families have been separated since the Korean War, which saw huge movements of refugees in both directions.
Most don't even know whether their relatives are still alive because the two countries bar citizens from exchanging mail, phone calls and email.
Each of the past reunions brought together weeping family members who embraced each other, desperate for details and news. They were separated again a few days later.
No Korean has received a second chance to meet their relatives, according to South Korean Red Cross officials.
The two Koreas also agreed today to work toward a "fundamental resolution" of the issue of separated families, by making the reunions regular events, allowing families to exchange letters and allowing them to find out whether their loved ones are still alive, the Unification Ministry said.
North Korea has proposed another set of talks on resuming lucrative, jointly run tours to Diamond Mountain.
Analysts in South Korea have said that North Korea's concessions are an attempt to resume tours to Diamond Mountain, which would bring the impoverished nation a crucial source of legitimate hard currency.
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