She said a new Trump-Kim summit is "unlikely" to happen this year but left a remote door open, suggesting "a surprise thing may still happen."
While this is hardly a surprise given stalled nuclear talks since the end of last year - hopes for any resumption which has since been completely dashed - what is new is her assertion that there will be peace as long as the US "don't touch us and hurt us, everything will flow as is."
The comments carried by KCNA news agency are a huge change in tune when compared to her coming close to threatening all-out war against the South a month ago.
Pyongyang had ordered a military build-up along the DMZ ostensibly in response to South Korean activists floating 'propaganda balloons' across the border, urging citizens in the North to defect.
Kim Yo Jong said Friday:
"We would like to make it clear that it does not necessarily mean the denuclearisation is not possible," and added: "But what we mean is that it is not possible at this point of time."