"The reconnection of railroads and roads is the beginning of mutual prosperity on the Korean Peninsula".
It will be the third time the two leaders meet in a series of diplomatic engagements that began with their summit in the border village of Panmunjom in April. At the Panmunjom summit, Kim also agreed to work toward the denuclearization of the Korean Peninsula. South Korea's Unification Minister Cho Myoung-gyon, leading the delegation from Seoul, said it was important that the two Koreas keep "the same mind".
The tough worldwide restrictions block most financial transactions and 90 percent of all trade with North Korea. It can not proceed with potential economic projects, such as those being discussed with South Korea and others, while still technically a belligerent and subject to crippling United Nations sanctions.
Meanwhile, Seoul's Vice Foreign Minister Cho Hyun ruled out the possibility that South Korean firms, which unknowingly purchased North Korean coal, would be subject to United States "secondary boycott" measures that penalize entities doing business with the North.
Last month, the North's state media criticized the South accusing it of only caring only about the views of the United States and failing to take practical steps to advance inter-Korean relations.
The pair, alongside other North Korean officials, feasted on filet mignon, corn puree, and homemade vanilla ice cream, and later went on to meet Donald Trump and other administration officials at the White House.
The South Korean envoy said he urged Pyongyang to accelerate its current nuclear negotiations with the United States.
North Korea marked the anniversary of the end of World War II and its liberation from Japanese colonial rule with a series of ceremonies ahead of what is expected to be a much bigger event next month - the 70th anniversary of its national foundation day. The document called for "establishing a permanent and peaceful Korean Peninsula peace regime" and "complete denuclearization".
Moon said he intends to play an active role in moving the denuclearization progress forward.
Moon is to visit Pyongyang in September to hold another summit with Kim.
Citing research by the state-run Korea Institute for International Economic Policy (KIEP), the President said inter-Korean economic cooperation could bring in KRW 170 trillion (USD$150 billion) over the next 30 years.
"But it is necessary for the South Korean government to clarify what the concept of "complete denuclearization" of the Korean peninsula means... to promote the DPRK-U.S. nuclear talks", Cheong Seong-chang, Vice President of Research Planning at the Sejong Institute, said.
That initiative would see three economic belts connect the two Koreas: an energy-resource belt on the East Sea coast, an industrial-logistics and distribution-transportation belt in the West Sea coast, and an environment-tourism belt at the Demilitarized Zone (DMZ).
During an address Wednesday, South Korean leader Moon Jae-in expressed optimism and willingness to sign a peace treaty to officially bring an end to the Korean War.
Casting aside a notion that inter-Korean relations were only the "by-effects" of the North-U.S. relationship, the former Special Forces commando said strong Seoul-Pyongyang ties were the "driving force behind the denuclearization of the Korean Peninsula", making clear his commitment to further improving inter-Korean relations to a new level on the back of fast-changing diplomacy.