Despite the test, the US State Department said it remained "confident that the promises made by President Trump and Chairman Kim will be fulfilled", referencing the unprecedented summit between both leaders in Singapore in June.
"By referring to it as a 'tactical weapon", it is sending a message that (the test) is not an armed provocation, ' an official at Seoul's defence ministry told reporters.
Any testing of new weapons is likely to raise tensions with Washington, which has said there will be no easing of worldwide sanctions until North Korea takes more concrete steps to abandon its nuclear weapons or long-range missiles.
Unlike South Korea, North Korea never signed a treaty with Japan dealing with compensation.
Later, the Prime Minister held bilateral meetings with his Australian counterpart Scott Morrison and Prime Minister of Thailand General Prayut Chan-o-cha on the sidelines of the East Asia Summit here.
Shin said the weapon North Korea tested could be a missile, artillery, an anti-air gun, a drone or other high-tech conventional weapons systems. "We must extend the security of insurance and pension to more than a billion workers in the informal sectors worldwide, who still do not have it", Prime Minister Modi said in his speech.
He added that the development of the weapon was spearheaded by his late father and former leader Kim Jong-il.
"Kim Jong-un inspected the testing of a newly developed high-tech tactical weapon at the Academy of National Defence Science", Yonhap, a South Korean news agency, cited the North's state broadcaster...
Kim expressed "great satisfaction" and said the test marks "decisive turn in bolstering the fighting capacity" of the North's military, KCNA said.
The US Vice-President also acknowledged India's economic progress and said that the country is a positive factor in regional and global relations.
The only picture released by state media showed Kim standing on a beach surrounded by officials in military uniforms, but no weapons were visible.
The NYT report accused North Korea of engaging in "great deception" - even though the weapons in question were neither long-range nor nuclear armed and were well known to be in the state's arsenal.
The news, which came nearly a year after Pyongyang's last test of an intercontinental ballistic missile, recalled the repeated announcements of 2017.
Pence urged other countries at the meeting to keep up sanctions pressure on the North amid signs that Pyongyang's traditional trading partners, China and Russian Federation, have eased enforcement.
Vice president Pence acknowledged that India had made progress economically, the ministry said. "The issue of terrorism was discussed and US VP Pence appreciated cooperation between US and India on counter terrorism", the MEA said.
He has also unleashed a global charm offensive that has won him summits with Chinese President Xi Jinping, South Korean President Moon Jae-in and US President Donald Trump. We're going to keep the sanctions in place.
Even if the test was a message for Washington and Seoul, Friday's report from the North was noticeably less belligerent than past announcements of weapons tests, and didn't focus on North Korean claims of US and South Korean hostility.