Kim Jong-un agrees to meet Donald Trump in Demilitarised Zone

US President Donald Trump will meet North Korean leader Kim Jong Un at the Demilitarised Zone between the two Koreas, South Korean President Moon Jae-in says.

Mr Trump arrived in Seoul late on Saturday for talks with Mr Moon after attending a Group of 20 summit in Osaka, Japan, during which he made a surprise, spur-of-the-moment offer to meet Mr Kim.

It will be the third time in just over a year Mr Trump and Mr Kim have met and four months since their second summit in Hanoi, Vietnam broke down.

"When a third summit between the United States and North Korea happens will depend what change today's meeting will make," Mr Moon told a joint news conference with Trump.

The meeting raises hopes for a revival of stalled nuclear talks.

Mr Trump and Mr Moon will visit the heavily-fortified border together on Sunday.

The US president wanted to visit during a 2017 trip to South Korea, but heavy fog prevented it.

US President Donald Trump (left) with North Korean leader Kim Jong-un in Hanoi, Vietnam, in February. Source: AAP/AP

Mr Moon said earlier a handshake between Mr Trump and Mr Kim at the DMZ would be a historic event, and would give hope for progress in their dialogue.

"It would set a significant milestone in the process of achieving complete denuclearisation and lasting peace on the Korean peninsula," Mr Moon told the US president.

Mr Kim and Mr Moon held their historic first summit in the zone last year, which preceded the first US-North Korean summit in Singapore in June last year.

The South Korean leader has championed efforts to end hostilities between North Korea and the United States, vowing to play a mediator role in nudging North Korea into giving up its nuclear weapons in exchange for sanctions relief and security guarantees.

Mr Trump said earlier both he and Mr Kim were eager to meet.

"It's going to be very short, virtually a handshake. But that's OK. A handshake means a lot," Mr Trump said after a meeting with South Korean business leaders including the heads of Samsung, Hyundai Motor, Lotte, SK and Poongsan groups.

He said he and Mr Kim had a "good relationship", but there was still a long way to go to reach an agreement that would end the North's nuclear program in return for an end to sanctions and permanent peace on the Korean peninsula.

Mr Trump told Mr Moon he had "plenty of time" and was in "no rush" to reach a deal.

North Korea has pursued nuclear and missile programs for years in defiance of UN Security Council resolutions, and easing tensions with North Korea is one of the US President's top foreign policy priorities.

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