The reunion was expected to be held during the upcoming Chuseok holiday that falls in late September.
Millions of Koreans have been separated for six decades as the Korean War ended in a 1953 armistice. The last family reunion was held at the DPRK`s mountain resort of Kumgang in February 2014.
The move came days after South Korea and the DPRK agreed on Tuesday to defuse tensions on the Korean Peninsula following a 43- hour marathon dialogue at Panmunjom.
Pyongyang expressed regrets over a landmine blast which injured two South Korean soldiers on the southern section of the DMZ on Aug. 4. The incident escalated the inter-Korean tensions into a crisis that militaries of the two countries were put on the highest alert.
South Korea stopped broadcasting all propaganda messages with loudspeakers in frontline areas. In return the DPRK agreed to lift an order for its forces entering a quasi state of war.
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