The two sides have agreed to hold high-level talks next week to prepare for an April summit between North Korean leader Kim Jong Un and South Korean President Moon Jae-in.
The summit aims to improve relations and resolve the stand-off over the North's nuclear program.
Unification Minister Cho Myoung-gyon will lead the South's delegation at the March 29 meeting at the border village of Panmunjom, South Korea said, where officials will discuss the date and specific agendas of the summit.
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The North's delegation will be led by Ri Son Gwon, chairman of the North's agency that deals with inter-Korean affairs.
The rivals agreed to a summit in late April when Moon's envoys visited Kim in Pyongyang earlier this month. South Korean officials also brokered a potential meeting between Kim and President Donald Trump by the end of May.
The leaders of the two Koreas have held talks only twice since the 1950-53 Korean War.
North Korea in 2017 tested its most powerful nuclear weapon to date and test-launched three intercontinental ballistic missiles theoretically capable of striking the US mainland.
There are also concerns in South Korea over whether the appointment of John Bolton, Trump's hawkish replacement of national security adviser H.R. McMaster, could potentially complicate efforts to set up talks between Trump and Kim, given his past bellicose rhetoric about North Korea.
