Moon, who had convened an emergency meeting with Seoul's national security council following the test, also said South Korea must prepare for non-nuclear but equally lethal attacks, including biochemical threats and EMP or "electronic" bombs from North Korea, Yonhap reported.
"We must take all diplomatic measures with the international community to make North Korea give up its nuclear weapons and missiles, and, with a solid U.S.-South Korea posture, respond to North Korea's growing nuclear and missile threats," the South Korean leader said.
Moon also told South Korean officials to "make the people feel safe" and to "carefully analyze new types of threats, such as EMP attacks and biochemical weapons."
He described Pyongyang's provocations as a "serious threat to the Korean peninsula and the international community."
"We condemn it," Moon said. "We have the power to destroy North Korea's provocations preemptively, and paralyze North Korea."
Six minutes after North Korea launched its missile on Friday, South Korea's military launched two self-developed missiles, the Hyunmoo-2, but one of the missiles fell into the East Sea, or the Sea of Japan, in a matter of seconds, EDaily reported.
The successfully launched missile flew about 155 miles, but the failed missile is raising concerns among military experts in the South there may be a problem with Kill Chain, Seoul's preemptive strike system.
Seoul's stock markets were rattled by the provocation, with the main index KOSPI falling to 2,365 points but recovering losses by mid-afternoon, Korea Economic Daily reported.
The market was overall down by 0.12 percentage points Friday.