North Korea's state television aired footage of a musical show marking the birthday of former leader Kim II Sung. It ended with a mock-up video of missiles engulfing the United States in flames.
Moon's overture marks a shift in Seoul's policy towards a nuclear-ambitious Pyongyang. The South Korean Red Cross would also like to reunite familes kept apart by the frozen conflict.
The US has confirmed North Korea test-launched an intercontinental ballistic missile for the first time. An ICBM could reach Alaska and possibly Hawaii.
North Korea's latest missile launch has drawn a US call for tougher sanctions at the UN Security Council. China has condemned the launch and says a deal could include a halt to US-South Korea military drills.
North Korea has claimed that it successfully tested an intercontinental ballistic missile which flew for 39 minutes. Russia and China have called for a freeze on nuclear and missile tests.
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