Kim Jong-un stood on a balcony at the Grand People's Study House overlooking Kim Il Sung Square watching the second day of funeral ceremonies for his late father.
He was flanked by top party and military officials, including Kim Jong-il's younger sister, Kim Kyong Hui, and her husband Jang Song Thaek, who are expected to serve as mentors of their young nephew.
Given Kim Jong-un's inexperience and age - he is in his late 20s - there are questions outside North Korea about whether he is capable of leading a nation engaged in long-stalled negotiations over its nuclear programme and grappling with economic hardship and chronic food shortages.
"The fact that he completely resolved the succession matter is great comrade Kim Jong-il most noble achievement," Kim Yong Nam, president of the Presidium of the Supreme People's Assembly, told the large audience at the square.
"Respected comrade Kim Jong-un is our party, military and country's supreme leader who inherits great comrade Kim Jong Il's ideology, leadership, character, virtues, grit and courage," added Kim Yong Nam, considered North Korea's ceremonial head of state.
Kim Jong-il, who led his 24 million people with absolute power for 17 years, died of a heart attack on December 17 aged 69 years old, according to state media.
He inherited power from his father, North Korea founder Kim Il Sung, who died of a heart attack in 1994, in what was the communist world's first hereditary succession.
Following Kim Jong-il's death, attention turned to Kim Jong-un who was revealed last year as his father's choice among three known sons to carry the Kim dynasty into a third generation.
Kim Jong-il held three main positions: chairman of the National Defence Commission, general secretary of the Workers' Party and supreme commander of the Korean People's Army.
Kim Jong-un's leadership is not expected to become official until top party, parliamentary and government representatives convene to confirm his ascension.
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