The deal was announced after a new round of talks amid a thaw in cross-border ties.
Chun Hae-sung, the South's chief negotiator in the talks, made the announcement at a news conference and said both countries would participate in joint cultural events and training for their ski teams.
North and South Korea have been talking since last week about the Olympics, offering a respite from a months-long standoff over Pyongyang's pursuit of nuclear and missile programs, although Japan urged caution over the North's "charm offensive".
The two Koreas will compete as a unified team in the Olympics for the first time, though they have joined forces at other international sports events before.
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