As a next step, North Korea will allow experts from "concerned countries" to watch the its closure
The leaders of South and North Korea were all smiles at their third summit this year, this time in Pyongyang, on Wednesday.
Kim Yong Un made another pledge to the South's Moon Jae-in on denuclearisaing the North.
The hope is that it will kickstart talks between the US and North Korea which have stalled.
"South and North Korea agreed on a denuclearisation plan for the first time. It is a very meaningful outcome. The North has decided to permanently abolish the Tongchang-ri engine test site and missile launchers with experts from relevant countries in attendance," South Korean President Moon Jae-in said.
Kim also pledged establishing closer ties with the South. "I promised President Moon Jae-in that I will visit Seoul in the near future," he said.
And Kim Yong Un priomised to close down the Yongbyon nuclear facility but only if the US first makes a reciprocal move which he failed to specifiy.
Washington meanwhile is still demanding concrete action towards denuclearisation, such as a full disclosure of North Korea's nuclear and missile facilities, before agreeing to key goals of Pyongyang.