At a joint news conference with North Korean leader Kim Jong Un, Moon said Kim had agreed to allow in international experts to witness the dismantling of its west coast Sohae missile engine testing facility and launch pad.
However he said that the shutdown of the North's main nuclear facility, the Yongbyon research centre, would be dependent on the US taking corresponding measures.
When the facilities would be dismantled and exactly what the North Korean wanted from the US was unclear. Kim also said nothing about the dismantlement of his existing arsenal, which the US has demanded.
The Yongbyon complex houses a nuclear reactor, a fuel reprocessing facility that can recover weapons-grade plutonium and a uranium enrichment facility which can also be used to make nuclear weapons.
Both Koreas had agreed to "remove all dangers that could cause wars on the Peninsula," Moon said, adding, "Complete denuclearization is in the not-too-distant future."
The South Korean leader also said that the two countries had agreed to launch a bid to jointly host the 2032 Summer Olympics. North Korea took part in the Winter Olympics in South Korea in February.
"We are going to restore normal life," said Moon, the first South Korean president to visit Pyongyang in 11 years.
Kim said meanwhile that he wanted to visit Seoul "soon."
The news conference came after the two leaders, who were meeting for third time this year following summits in April and May, were broadcast live on television signing their agreement.
Their defence ministers were also shown signing an agreement on reducing military tensions on the Korean Peninsula.
That agreement included the creation of buffer along their borders and a no-fly zone along the military demarcation line that divides them in order to avoid accidental clashes.
Both sides had also agreed to suspend artillery drills and field manoeuvres within the zones from November 1, Yonhap reported.
Both sides have also agreed to establish a buffer zone in the Yellow Sea where firing exercises and naval manoeuvres will be prohibited.
Kim had announced his commitment to denuclearization at his previous summits with Moon, as well as at his meeting with US President Donald Trump in June in Singapore.
However, he had given no concrete details on how and by when the process would be complete and negotiations between the US and North Korea had since stalled.
Trump said on Twitter that the developments were "Very exciting!"
"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 international experts," he wrote.
"In the meantime there will be no Rocket or Nuclear testing."
