South Korean President Moon Jae-in and North Korean leader Kim Jong-un agreed to strengthen cross-border ties between the two countries.
The two sides have agreed to work together and allow the families, separated by the Korean War, hold video-based reunions and exchange video messages, reported Yonhap News Agency.
The Korean War, which raged between 1950 and 1953, divided scores of families, which periodically got a chance to meet their separated relatives.
This move to united the divided families comes amidst calls for a peaceful, nuclear-free Korean peninsula from both the leaders at the ongoing Pyongyang Summit.
The last meeting between the separated families was held in August after the historic inter-Korean summits were held in April and May. The two leaders promised to address the humanitarian challenges arising from the war during these meetings.
A permanent meeting facility would be opened in Kaesong, a North Korean town situated near the border with South Korea.
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With both sides looking forward to continued peace and economic development in the peninsula, the leaders will also be visiting the sacred mountain, Mount Paektu on Thursday morning, according to a South Korean presidential spokesperson.
South Korean President Moon Jae-in will then head back to Seoul, wrapping up the three-day summit.