"One way to send a reconciliatory gesture to North Korea is that we are not going to bring any strategic assets like B-1s, F-35s or nuclear powered submarines", said political analyst Choi Kang with the Asan Institute in Seoul.
North Korea has sent another threat America's way warning of a "merciless strike" ahead of joint military drills between the US and South Korea.
North Korea said Sunday that the military exercises "add fuel to the fire" increasing the likelihood that Pyongyang will conduct further missile and nuclear tests in the future.
Moon, who took office in May, announced on his 100th day in office that US and South Korean policies are aligned on North Korea.
Called Ulchi Freedom Guardian, the joint drills will take place from August 21 to August 31 and involve computer simulations created to prepare for the unthinkable: war with nuclear-capable North Korea.
Just last week, Pyongyang said it had finalized a plan to fire four missiles toward the USA territory of Guam. "I want to warn North Korea to do no more risky gambling", Moon said.
U.S. -South Korean military drills known as "Ulchi-Freedom Guardian" are being carried out when the tensions between Washington and Pyongyang have escalated to such an extent that Kim Jong-un has threatened to launch four ballistic missiles into waters near Guam, home to major American military bases in the Western Pacific.
Pyongyang also declared that its army can target the United States anytime, and neither Guam, Hawaii nor the USA mainland can "dodge the merciless strike".
A handout photo made available by the United States Forces Korea (USFK) and the 8th Army shows a missile being fired into the East Sea during US-South Korean joint Precision Firing Capability exercise along the east coast in South Korea, 05 July 2017. "We can do these things quietly without suggesting you're reducing our opposition to North Korea's nuclear program".
President Donald Trump has warned that North Korea will face "fire and fury" if it threatens the United States.
The US has reduced the number of its participating service members to 17,500 from 25,000, according to the Pentagon. North Korea has termed the decision to hold the exercise a "catastrophe".
North Korea has been acquiring radar systems to prepare for possible F-35A incursions and has deployed more than 40 air-to-surface SA-5 Gammon missiles near Pyongyang, according to the report.
The U.S. and South Korea on Monday began 10 days of large-scale joint military exercises, but with a reduced number of troops and assets than had participated a year ago.