South Korea's Moon says it is time for North Korea to decide - dialogue or not

South Korean President Moon Jae-in said on Thursday dialogue with North Korea was more pressing than ever and a peace treaty to permanently end the Korean War must be signed by all parties to establish lasting peace on the peninsula.

Moon said in a speech in Berlin the North made a disappointing and misguided decision to conduct a test of a ballistic missile on Tuesday and it now faced the last chance to make the right choice.

"We do not wish for the collapse of North Korea and we will not pursue any form of unification by absorbing the other. We will not pursue unification by force," he said.

Moon is in Germany to attend a summit of G20 countries. The two Koreas remain in a technical state of war under an armistice ending the 1950-53 Korean War, signed by the North, the United States and China.