The two sides also agreed to stop exchanging verbal insults and to continue their nascent dialogue at a convenient date, according to a joint statement read to reporters in Seoul by South Korea's chief talks delegate Kim Kyou-Hyun.
The agreement, which was also carried on the North's official KCNA news agency, suggested a significant concession by North Korea which had wanted the South to postpone the February 24 start of its annual military drills with the United States until after the reunion.
The apparent concession and the commitment to continue what has been the highest-level official contact between the two countries since 2007, will fuel hopes that they might be entering a period of genuinely constructive engagement.
"Agreement was reached today after North Korea accepted our position that the family reunion event is important ... As the first step to build trust" Kim said.
It followed two days of talks Wednesday and today in the border truce village of Panmunjom where the armistice ending the 1950-53 Korean War was signed.
There had already been signs of a shift in the North's position at Wednesday's first round, when it demanded the military drills be postponed -- a change from its usual position that they be cancelled entirely.
Seoul's unequivocal rejection of any change to the drills' schedule because of the family reunion was lent weight yesterday by visiting US Secretary of State John Kerry.
Addressing a press briefing in Seoul, Kerry urged Pyongyang to act with "human decency" and not try to use "one (issue) as an excuse to somehow condition the other".
Kerry left for China today morning following his brief stop in Seoul, where he had focused on efforts to curb North Korea's nuclear weapons programme with Park and other officials.
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