Other delegates include Archbishop Hyginus Kim Hee-jung of the Catholic church, a female ice hockey player who led the joint inter-Korean team which competed in the South's 2018 Winter Olympics, and K-pop star Ailee.
North Korean soldiers and naval troops quick-marched into position to welcome Mr Moon, and the two leaders inspected the honour guard. "Now it's time to bear some fruits", Moon said.
Moon has met Kim twice this year, but each time at the Koreas' border village of Panmunjom.
If North Korean leader Kim Jong Un was searching for the flawless propaganda set piece, something created to show his people that he's a strong leader pushing inexorably for the long-delayed, long-promised prosperity they deserve, then visiting South Korean President Moon Jae-in might be providing him with a unique opportunity during their summit this week.
The pair were also greeted by tens-of-thousands of North Koreans who were waving North Korean flags, flowers and a blue-and-white map which symbolises the unification of the two countries. But they were later suspended after conservatives took power in Seoul with hardline policies toward the North. Kim Jong Un took office in late 2011 upon the death of his father. As for Kim, when speaking with Moon's special envoys earlier this month he is said to have expressed exasperation that the global community had "undervalued" the steps he believed he had already taken toward denuclearization.
Moon was expected to have talks with Kim on Tuesday and Wednesday, according to Moon's chief of staff. Moon and Kim were also expected to jointly announce the results of their talks on Wednesday if things go smoothly.
Moon - whose own parents fled the North during the three-year conflict - and Kim later began their formal talks.
Moon is set to depart for Seoul on Thursday morning with no official ceremony, Im said, adding again that there could be changes to the itinerary.
"It's very important for South and North Korea to meet frequently, and we are turning to a phase where we can meet anytime we want".
The two leaders stepped out of the same Mercedes vehicle with open-rear seats to arrive at Paekhwawon State Guest House, where Moon will stay.
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"Given U.S. skepticism that South Korea may have oversold Kim's willingness to denuclearize, how President Moon delivers his sincerity toward denuclearization to Trump would be a key factor for the fate of their second summit", Lee told a forum on Monday in Seoul.
Moon is the third South Korean leader to visit North Korea's capital for summits, but the first since 2007.
The inter-Korean summit will be a litmus test for another meeting Kim has recently proposed to U.S. President Donald Trump, giving clues to whether Kim is serious about denuclearisation, a commitment he made at their first encounter in June.
When North Korean leader Kim Jong Un walked through the departure gates at Sunan International Airport and onto the red carpet, the crowd erupted.
On this trip, the two leaders are expected to discuss a host of issues, including economic cooperation, North Korea's nuclear-weapons program, and further steps to end the Korean War.
His second priority is to "facilitate North Korea-United States dialogue for denuclearization".
He went on to say that he believes the "the establishment of an enduring peace regime is the way for the South and North to become the masters of Korean Peninsula issues, without getting pushed around by any global situation and is also the path toward common prosperity and reunification".
"The situation has been stabilized due to [Moon's efforts to hold the summit] and I believe more advanced achievements in U.S. -DPRK relations will come".
With North Korea hard-pressed by global sanctions, it is unlikely that the third inter-Korean summit will yield immediate results in such areas as cross-border economic cooperation.