Moon, who was elected as the country’s President last month after a cronyism scandal led to Park Geun-hye being impeached, has pledged greater dialogue with the neighbouring country in a bid to reduce tensions between the two nations.

He spoke prior to the performance of a North Korean demonstration team from the International Taekwondo Federation (ITF), which has been described as a "show of taekwondo unity and sportive goodwill" by World Taekwondo.

The 12-member team’s performance was their first-ever in South Korea.

"Friendship and goodwill exchanges between the two federations will of course greatly contribute to reconciliation between South and North Korea, as well as the establishment of peace on the Korean Peninsula," Moon said.

"I wish the achievement made by taekwondo will be repeated at the Pyeongchang Winter Olympic Games next year.

"If a North Korean delegation takes part in the Pyeongchang Winter Olympics, I believe it will greatly contribute to realising the Olympic values of friendship and peace."

In his speech, Moon said he'd once again like to feel the emotions from watching the joint march of the two Koreas at the Opening Ceremony of the Sydney 2000 Olympics.

He went onto make references to two events where the Koreas fielded joint teams - the 1991 World Table Tennis Championships and the 1991 FIFA World Youth Championship.

Also present at the Opening Ceremony were Chang Ung, North Korea's sole member of the International Olympic Committee (IOC), and Ri Yong-son, the North Korean head of the ITF.

Before his speech, Moon shook hands with Chang and exchanged a few words with him.

"I believe in the strength of sports that have been establishing peace," he added.

"I am glad to see the first sports exchange of the South and the North under the new (South Korean) Government take place at this event."

Earlier this week, it was revealed Pyeongchang 2018 will discuss plans for North Korea to stage competition during next year’s Winter Olympics following a suggestion from the Government.

South Korea’s Sports Minister Do Jong-hwan raised the prospect working with North Korea in an effort to boost friendship.

Tensions have risen in recent months with the United States and North Korea trading threats as the latter nation's leader Kim Jong-un launched new missile tests despite repeated warnings to stop.

The US are activating a missile defence system in South Korea and tightened sanctions against the North in April.

Do stated that he intends to discuss possible ways to ensure North Korea's participation at Pyeongchang 2018 with the IOC.

One idea was for North Korea to host some skiing competitions at the Games.

According to the Korea Herald, he will discuss the possibility of North Korea hosting competitions at the Masikryong ski resort.

Despite their openness to the idea, it remains to be seen whether Pyeongchang 2018 would make a significant change to plans of this nature with just eight months to go before the Games, which are due to take place between February 9 and 25.

It is not the first time proposals for North Korea to host competitions at the Games have been mooted, with the suggestion having been raised back in 2015.

The prospect was suggested by Gangwon Province Governor Choi Moon-soon that South Korea’s bitter rival could host some of the snowboarding events in an attempt to ease tensions.

This proposal was swiftly dismissed by Pyeongchang 2018, but organisers now appear open to discussing the possibility of North Korean hosting some events.

Do has been quoted by the Korea Herald as saying that IOC President Thomas Bach, who is scheduled to attend the Closing Ceremony of the World Taekwondo Championships, has plans to meet Moon on July 3.