The two Koreas on Wednesday agreed to reopen the Kaesong Industrial Complex next Monday, 161 days since the North closed the border to goods and personnel.
A cross-border committee recently formed to oversee the industrial park continued their discussions overnight and announced the decision in the morning.
The two sides agreed to ease restrictions on travel, communications and customs and try to attract international investment to the industrial park.
In a press briefing after the meeting, Kim Ki-woong, who heads the South Korean side of the committee, said the supply of tap water and 100,000 kW of electricity will resume on Friday.
The two Koreas agreed to set up a new system this year to use radio-frequency identification devices to allow South Korean factory owners and personnel easy movement to and from the complex on a daily basis.
"So far staffers have had to notify North Korea three days before their scheduled travel time and present a fresh travel plan and wait another three days if they changed their mind," Kim said. "But in future they can travel anytime on specified dates by simply touching their electronic cards to the card reader."
They also agreed to permit staffers more Internet access and use of mobile phones in the industrial park.
The first investment blitz for foreign businesspeople in South Korea is to take place at the industrial park in October.
"Foreign businesses have so far been reluctant to invest in the industrial park due to the lack of Internet access and safety concerns," Kim said. "So these decisions will be helpful to attracting international investment."