If realized, Kim would be the first North Korean leader to visit Seoul since the peninsula was divided into North and South.
SEOUL/PYONGYANG ― South Korean President Moon Jae-in and his North Korean counterpart Kim Jong-un signed the peace agreement on Wednesday after their closed-door talks at state guesthouse Paekhwawon in Wednesday morning.
In this image made from video provided by Korea Broadcasting System (KBS), South Korean President Moon Jae-in, left, and North Korean leader Kim Jong Un pose after signing documents in Pyongyang, North Korea Wednesday, Sept. 19, 2018.
In the joint press conference, Kim said, "we have agreed on Pyongyang Peace Agreement".
"Kim Jong Un has agreed to allow Nuclear inspections, subject to final negotiations, and to permanently dismantle a test site and launch pad in the presence of worldwide experts". They continued most every year until 2014, then were revived during North Korea's celebrations of the 70th anniversary of its state founding earlier this month.
The North will also permanently dismantle its Nyongbyon nuclear complex so long as the United States takes corresponding measures.
Mr. Moon was seeking to engineer a proposal that combines a framework for the North's denuclearisation and a joint declaration ending the 1950-53 Korean War.
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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".
At the start of their meeting Tuesday, Kim thanked Moon for brokering the June summit with Trump.
The two Koreas will continue to jointly take part in global sporting events, including the upcoming 2020 Olympic Games, the leaders said in their Pyongyang declaration.
Mr Kim pledged to work toward the "complete denuclearisation of the Korean peninsula" during his first encounter with Mr Moon, and at his summit with Mr Trump in June.
"It's not too much to say that it's Moon's efforts that arranged a historic North Korea-U.S. summit".
After a closed-door summit, the South's delegation, including top business executives and musicians, joined Kim and North Korean officials at Pyongyang Grand Theatre for an orchestral performance by the North's Samjiyon orchestra.
Moon is expected to attend a mass games spectacle later in the day, which an estimated 150,000 spectators plan to attend. "Because of that, the regional political situation has been stabilized and more progress on North Korea-U.S. ties is expected", Kim said, according to South Korean media pool reports and Moon's office.