North and South Korea will make a joint bid to host the Summer Olympic Games in 2032, the countries have announced after a friendly summit.

The two countries will cooperate in major sporting events including the 2020 Olympics Games as well, a joint statement between the countries said.

North Korean dictator Kim Jong-un will also make a visit to the South Korean capital Seoul this year.

The visit would mark the first time a North Korean leader visited Seoul since the two countries were split in 1945.

South Korean president Moon Jae-in also announced North Korea will permanently shut down the Dongchang-ri missile testing site and launch pad, witnessed by international inspectors.

"The North has agreed to permanently shut down its Dongchang-ri missile engine testing facility and missile launch pad under the participation of experts from related countries," he said.

Moon Jae-in and Kim Jong-un during a welcome parade in Pyongyang, North Korea. (AAP)

The North will also permanently dismantle its Nyongbyon nuclear complex so long as the United States takes corresponding measures.

"North-South relations have now entered a new era," President Moon tweeted earlier.

Mr Moon has been in Pyongyang for the summit.