Kim "warmly welcomed" the South Korean officials on their visit to Pyongyang and hosted a dinner for them Monday, it said.
"He had an openhearted talk with the party of the special envoy delegation of the south side over the issues arising in actively improving the north-south relations and ensuring peace and stability on the Korean Peninsula," KCNA said.
"He also made an exchange of in-depth views on the issues for easing the acute military tensions on the Korean Peninsula and activating the versatile dialogue, contact, cooperation and exchange," it reported.
Kim's meeting with the most senior South Koreans to travel to the North in more than a decade is the latest step in an Olympics-driven rapprochement on the divided peninsula.
The delegation is pushing for talks between the nuclear-armed regime and the United States, after Kim sent his sister Kim Yo Jong to the Winter Games in the South.
Kim has invited Moon to a summit in Pyongyang.
Kim Yo Jong's trip was the first visit to the South by a member of the North's ruling dynasty since the end of the 1950-53 Korean War.
The Winter Olympics provided "a good atmosphere of reconciliation, unity and dialogue between the north and the south", KCNA quoted Kim Jong Un as telling the South Korean envoys.
Moon has sought to use the Pyeongchang Games to open dialogue between Washington and Pyongyang in hopes of easing a nuclear standoff that has heightened fears for global security.
Before leaving for Pyongyang, the South's national security advisor Chung Eui-yong said: "We plan to hold in-depth discussions for ways to continue not only inter-Korean talks but dialogue between North Korea and the international community including the United States."
It is a challenging task -- in defiance of UN sanctions, the isolated and impoverished North last year staged its most powerful nuclear test and test-fired several missiles, some of them capable of reaching the US mainland.
US President Donald Trump dubbed Kim "Little Rocket Man" and boasted about the size of his own nuclear button, while the North Korean leader called Trump a "mentally deranged US dotard".
They traded threats of war and sent tensions soaring before a thaw in the run-up to the Winter Olympics.
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