President Kim was giving his new year message broadcast on state television.
He said if Pyongyang’s conditions were met, he would even be prepared to hold a summit meeting with South Korean President Park Geun-hye.
South Korea said the move was “meaningful”, and talks should include “practical and frank discussions on all issues of mutual concern”.
“Our government hopes for dialogue between the South and North Korean authorities in the near future without limits on format,” said Unification Minister Ryoo Kihl-jae, quoted by the South’s Yonhap news agency.
On Monday, Mr Ryoo had called for dialogue to resume on issues including reunions for families separated by the Korean War, adding that he hoped North Korea would respond positively.
He offered to meet in Seoul, Pyongyang or any other South or North Korean city agreed with North Korean officials.