President Park Geun-hye called Tuesday for a fundamental solution to the issue of families separated in South and North Korea following the 1950-53 Korean War.

The two Koreas have agreed to stage temporary reunions for 100 separated family members from each side on Oct. 20-26 at Mount Kumgang, a scenic mountain resort on the North's east coast.

The planned reunions are a part of a recent deal that defused military tensions on the Korean Peninsula.

"South and North Korea should find a fundamental solution to the issue of separated families," Park said in a Cabinet meeting, noting that family reunions held once or twice a year could never heal the pain of separated family members.

Family reunions have long been affected by political situations on the peninsula. The two Koreas last held family reunions in February 2014.

Hundreds of thousands of Koreans remain separated since the Korean War, which ended in a cease-fire, not a peace treaty.

Family reunions are a pressing humanitarian issue on the Korean Peninsula, as most of the separated family members are in their 70s and 80s, and wish to see their long-lost relatives before they die.

There are no direct means of contact between ordinary civilians of the two countries that remain divided by a heavily fortified border.

On Monday, North Korea vowed to launch a series of satellites as part of its space development program.

There is speculation that North Korea may launch a long-range rocket in October to mark the 70th anniversary of the founding of the Workers' Party.

It remains unclear whether North Korea's possible rocket launch could have any influence on the planned family reunions.

North Korea claims that its satellite launches are a peaceful project for science and economic development, calling it a sovereign right.

Still, South Korea and the United States view the satellite launches as a cover for testing the North's ballistic missile technology, which is banned under a U.N. resolution.

Also Tuesday, Park hailed a recent landmark compromise reached among labor, management and the government to ease labor restrictions.

The deal would allow companies, among other things, to dismiss workers who are either negligent or underperforming. Currently, companies can terminate an employee's contract only when they are involved in either a corruption or an embezzlement case. Firms are also permitted to lay off a number of workers should they face serious financial difficulty.

Park vowed to ensure that easier job dismissals would not be imposed on workers as she called on companies to make efforts to create jobs and revitalize the economy.

She also announced a plan to establish a fund that helps create jobs for young people, An Chong-bum, the senior presidential secretary for economic affairs, told reporters after the Cabinet meeting. He did not elaborate.

The unemployment rate for people between the ages of 15 and 29 stood at 8 percent in August, down from 9.4 percent a month earlier and the lowest level since October last year. The slight improvement came as students can find part-time jobs during the summer break. (Yonhap)