The leaders made the agreement in a phone call to lift the cap on the power of South Korea’s arsenal, Seoul’s presidential office announced today.
The agreement, which was made in the wake of Pyongyang’s sixth and biggest nuclear test on Sunday, is aimed at building South Korea’s ability to defend itself against further provocation.
The decision follows weeks of discussion between defence and foreign officials of the US and South Korea.
Presidential office spokesman Park Soo-hyun said: “President Moon noted the condition was very concerning in that the latest nuclear test showed more power than any previous tests and that North Korea itself has claimed the test involved a hydrogen bomb to be mounted on intercontinental ballistic missiles.”
President Trump said he recognised the need for Seoul to have powerful practical measures and promised to work closely together with the South.

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The decision came amid revelations from Seoul’s defence minister, Song Young-moo, the country was beginning to lean towards military measures rather than dialogue with North Korea.
Defence Minister Song Young-moo said in parliament: “During a National Security Council meeting (held shortly after the nuke test Sunday), views converged on a direction that strengthens the military standoff (for now), rather than (pursuing) the Berlin declaration or dialogue.”
The Berlin initiative hopes to achieve denuclearisation in the secretive state through security guarantees and economic incentives.
Pressure is mounting on President Moon to change course in his response to North Korea’s provocations as a policy of sanctions and dialogue lost popularity.
Defence Minister Song demanded the US deploys strategic assets on the peninsular on a “regular” basis. But insisted he did not call for Defence Secretary James Mattis to deploy the nuclear arsenal in the country despite sighting other politicians support for having tactical nukes in the region.
The US ambassador to the United Nations accused Kim Jong-un of “begging for war” by continuing with nuclear and inter-continental missile tests.
Nikki Haley warned the UN that the US’ patience was “not unlimited” saying that “enough is enough” in an unprecedented statement.
The news follows the secretive nations biggest nuclear test to date which triggered a magnitude 6.3 earthquake in the region.
The regime also claims the hydrogen bomb is small enough to fit in an inter-continental missile.