He expressed gratitude for Kim Jong-un’s “bold decision to open a new era” of peace summits.
It is their third this year and the first in which the South Korean leader has visited Pyongyang.
Mr Moon rode alongside Kim in an open-topped car through the North Korean capital waving to locals in traditional dress.
Kim said he wanted a “bigger outcome at a faster pace” than achieved before following his “historic” meeting with US President Donald Trump in June.
Thanks to that, the political situation in the region has stabilised and I expect more advanced results
“Thanks to that, the political situation in the region has stabilised and I expect more advanced results,” he said.
But despite a deal with the US, satellite images still appear to show activity at a missile factory.
Both leaders want the US to formally end the 1950-1953 Korean War for which no peace treaty has been signed.