Seoul's unification ministry said the office would become a "round-the-clock consultation and communication channel" for advancing inter-Korean relations, improving ties between the US and the North, and easing military tensions.
At a historic meeting in June between US President Donald Trump and Kim, the two leaders signed a vaguely-worded agreement on denuclearisation of the Korean Peninsula - touted by the US leader as a breakthrough deal to end the North's nuclear programme.
The opening of the office - initially scheduled for last month - was delayed amid the diplomatic deadlock.
But the atmosphere drastically improved after Kim met with the South Korean envoy in September, and Trump warmly reacted to a personal letter from Kim offering a second summit with the US.
Seoul said the office will become operational immediately after the opening ceremony on Friday, with Unification Minister Cho Myoung-Gyon and his North Korean counterpart Ri Son Gwon both taking part.
Both sides will deploy some 20 officials each, the ministry said.
"We expect that South-North Korean relations will be managed in a stable manner through 24-hour communications, 365 days of the year", the unification ministry said in a press statement.
The office will be located at what used to be the Seoul-invested industrial zone at the North's Kaesong City -- shut down in 2016 amid heightened tensions over the North's nuclear development.
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