Mr Rudd outlined three possible scenarios.
"The government has pursued the stance that humanitarian aid to those who are vulnerable in North Korea should be separated from political consideration", the minister said at the start of the meeting.
"We are deploying a PAC-3 system at about noon" to a base of the nation's Ground Self-Defense Force in the southern tip of Hokkaido, said Kensaku Mizuseki.
The final option was new diplomacy and a grand bargain that went to the bottom line of Chinese concerns.
China is the closest diplomatic and economic ally of North Korea, but last week joined forces with the rest of the UN Security Council states, voting for imposing the economic sanctions against Pyongyang.
Critics have raised concerns that Seoul's aid may compromise global efforts to pressure Pyongyang to give up its nuclear and missile aspirations.
The plan calls for North Korea to stop its missile and nuclear tests and for the US and South Korea to end their joint military exercises in turn.More news: Moon, Trump vow stronger pressure on N Korea
He said "a security guarantee other than the nuclear bomb" is needed for North Korea and pointed to Cold War detente as an example.
They staged a protest Sunday against the North's most powerful nuclear test on September 3 in downtown Harbin, Heilongjian Province, shouting, "We strongly protest the test that intimidates the three northeastern Chinese provinces (adjacent to the North)", Radio Free Asia said. Russian Federation helps North Korea when it comes to finance, and they are a huge benefit in providing them with economic boosts.
U.S. President Donald Trump, in a speech on Tuesday to the United Nations General Assembly of world leaders, said he would "totally destroy" North Korea if threatened and mocked its leader Kim Jong Un as a "rocket man" for his repeated ballistic missile tests.
The US flew four F-35B stealth fighter jets and two B-1B bombers over the Korean peninsula on Monday in a blunt show of force. The report did not directly link the drills to current tensions over North Korea.
Repeating the threats, US Defense Secretary Jim Mattis also said on Monday that Washington has "many military options" against North Korea, including some that do not put Seoul at risk.
For the 15 years since then Prime Minister Junichiro Koizumi made a historic visit to North Korea, little substantive progress has been made on the nation's efforts to bring back Japanese nationals abducted by North Korean agents.
Military options available to Trump range from non-lethal actions like a naval blockade aimed at enforcing sanctions to waging cyber attacks and positioning new US weaponry in South Korea, where the United States has 28,500 troops.
Lankov said he expects North Korea to respond to Trump's threats with "equally powerful. equally comical" and "probably more ridiculous rhetoric".