After a meeting between ministries and civilian experts, the government chose to support programs by the United Nations Children's Fund and the U.N. World Food Program for providing food and medicines to North Korean children and pregnant women, the Unification Ministry said.
Humanitarian aid to the DPRK will resume in around 21 months.
The hold on aid comes after controversy over the appropriateness of providing assistance at a time when the North is engaging in nuclear and missile provocations.
Other analysts and observers contend that Seoul's goodwill offer of aid also is a sound diplomatic tactic.
"We do not desire the collapse of North Korea".
"There are a number of problems with attempting to provide humanitarian aid to [North Korea] through such channels right now", Nicholas Eberstadt, a Korea expert with the American Enterprise Institute, told VOA's Korean Service.
The Unification Ministry, which initially described the aid package to local reporters last Thursday, never mentioned when exactly Seoul would carry out the initiative.
North Korea has launched dozens of missiles under Kim Jong Un's leadership as it accelerates a weapons programme created to give it the ability to target the United States with a powerful, nuclear-tipped missile.
As per the reports, the South aims to send $4.5 million worth of nutritional products for children and pregnant women through the World Food Programme and $3.5 million worth of vaccines and medicinal treatments through UNICEF.
"The government will determine the timing and volume of supplies given the current state of inter-Korean relations", - reported in Seoul, focusing on the fact that the provision of such assistance to the DPRK should be independent from political considerations. "The U.N. agencies are trying to help the neediest in North Korea".
European Union ambassadors have reached an initial agreement to impose more economic sanctions on North Korea, going beyond the latest round of United Nations measures, officials and diplomats said.
Stephan Haggard, a visiting fellow at the Peterson Institute for International Economics, echoed Moon's stance that strategic and humanitarian issues should not be linked.
The last time South Korea provided humanitarian aid to North Korea through an global agency was in December 2015, when it gave $800,000 to the U.N. Population Fund project to evaluate North Korean public health conditions.
In Geneva, North Korea told a United Nations rights panel that worldwide sanctions would endanger the survival of North Korean children.
"The U.N. sanctions against [North Korea] explicitly recognize that special steps must be taken to ensure that sanctions don't add to the suffering of innocent children, too many of whom in [the country] are already experiencing malnutrition", said Chris de Bono, UNICEF's regional chief of communication in East Asia and Pacific.
After the atomic experiment, the UN Security Council unanimously adopted its strongest sanctions against the regime.