North and South Korea make breakthrough agreement

South Korean President Moon Jae-in and his wife Kim Jung-sook receive flowers from North Korean children in a welcoming ceremony at Pyongyang's airport in this pool

Hero's welcome for Moon Jae-in carries Pyongyang's hope of nuclear breakthrough

In the fraught process of North Korean denuclearization, Pyongyang has hit the ball firmly into the United States court by offering to welcome worldwide inspectors to oversee the "permanent" dismantling of its missile-engine test site, and also to shut down its main nuclear complex at Yongbyon.

South Korean President Moon Jae-in (L) and North Korean leader Kim Jong-un shake hands after holding a joint press conference at the North's state guesthouse Paekhwawon in Pyongyang on September 19, 2018, to announce the outcome of their bilateral summit there.

Moon is on a three-day trip to the North Korean capital for his third summit with Kim this year, hoping to reboot stalled denuclearisation talks between his host and the United States.

The agreement came in a historic summit between Kim and South Korean President Moon Jae-in held at the state guesthouse Paekhwawon in Pyongyang.

Mr Kim and Mr Moon earlier smiled and chatting as they walked down a hallway and into a meeting room to finalise the joint statement, which also said that the leaders would push for a Korean peninsula without nuclear weapons and to "eliminate all the danger of war".

Moon Jae-in might just be able to convince the U.S. president to give Kim Jong-un another chance with diplomacy.

Mr Moon also said Mr Kim would try to visit Seoul sometime this year.

And arms control expert Jeffrey Lewis said the consensus view was that its uranium enrichment facility "was built for (the) express goal of being sacrificed", tweeting that he presumed the North had "at least one more" production site.

While the concessions and developments related to North Korea's nuclear complex and missile programs were significant, the big announcement at the summit related to conventional arms control between the two Koreas.

Some South Korean firms had been accused of importing coal from the North disguised as Russian shipments in violation of United Nations sanctions, which critics say raises questions about Seoul's will to vigorously enforce worldwide sanctions.

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US State Department spokeswoman Heather Nauert stated on Tuesday that Washington hopes the latest inter-Korean summit will bring about "meaningful, verifiable steps towards the denuclearisation of North Korea" and branded it a "historic opportunity".

Importantly, North Korea has completed development work on its large liquid propellant engines for intercontinental-range ballistic missiles.

Earlier in the day, Kim greeted Moon at the Pyongyang airport with a spectacle.

It was not clear what Trump meant by nuclear inspections.

"These are good-faith gestures which will likely facilitate further and more substantive negotiations", Madden said, adding a second summit between Kim and Trump was "highly probable".

North Korea says Kim's grandfather and father were born at Mount Baektu, a centrepiece of the North's idolization and propaganda campaign to highlight the ruling family's sacred bloodline.

The two Koreas agreed to begin construction to reconnect railways and roads linking the countries within this year.

The two Koreas are also working to adopt a separate military accord aimed at preventing armed clashes between the old foes, which are technically still at war because the Korean War ended with a truce, not a peace treaty.

But she warned that joint declaration signed in Pyongyang showed Kim had not budged, and is waiting for Trump to make the first move.

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