The armistice was signed on July 27, 1953. The United Nations had won most of its demands. The battle line became the boundary between North and South Korea, and a demilitarized zone (DMZ) was created by pulling back the respective forces 1.2 miles (2 km) along each side of the boundary.

The Armistice Agreement created a Military Demarcation Line (MDL) at the last line of contact between the opposing forces. To separate combat forces, both sides withdrew two kilometers from the MDL to form a four kilometer wide Demilitarized Zone (DMZ), which runs 241 kilometers across the width of the Korean peninsula.

The signed armistice established the Korean Demilitarized Zone (DMZ), the de facto new border between the two nations, put into force a ceasefire, and finalized repatriation of prisoners of war. The DMZ runs close to the 38th parallel and has separated North and South Korea since the Korean Armistice Agreement was signed in 1953.