Lim is senior pastor at the Light Presbyterian Church in Mississauga and had made more than 100 trips to North Korea in the past 20 years, supporting orphanages and a seniors' home.
Prime Minister Justin Trudeau's office confirmed the visit and North Korean media said Trudeau's national security adviser, Daniel Jean, had arrived in Pyongyang on Tuesday.
Charges against him included harming the dignity of the supreme leadership, trying to use religion to destroy the North Korean system, disseminating negative propaganda about the North to overseas Koreans, and helping American and South Korean efforts to help people defect from the north.
"Pastor Lim's health and well-being remain of utmost importance to the Government of Canada, and we are working to ensure that he receives any required medical attention".
The pastor had been arrested in January 2015 and accused of acts subversive against the north Korean regime, what the canadian authorities have always strongly denied.
North Korea's official KCNA news agency announced Hyeon Soo Lim's release Wednesday, saying he was freed on "sick bail".
Canada's Prime Minister Justin Trudeau welcomed the news and said, 'The Government of Canada was actively engaged on Mr Lim's case at all levels'.
But they were thrilled with the prime minister's statement.
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"Operational security considerations prevent us from discussing the matter further".
Tens of thousands of North Koreans took to the streets of Pyongyang in a display of defiance after U.S. President Donald Trump's latest warning to the reclusive state.
"Strategically, North Korea perhaps hopes to engender some goodwill from Canada as tensions rise", said Charles Burton, a former Canadian diplomat in China.
There was no clear connection between the release of Hyeon Soo Lim and the heightened rhetoric between Washington and Pyongyang.
However, following North Korea's aggressive actions in 2010, including the sinking of a South Korean warship in a disputed area, led Canada to impose tight restrictions on the relationship.
North Korea is still holding three Americans.
After tests of an Intercontinental Ballistic Missile (ICBM) capable of reaching the USA mainland, the United Nations last week imposed the most damaging restrictions so far aimed at slashing North Korea's vital export earnings.
"All government-to-government cooperation and communication on topics not covered under the Controlled Engagement Policy has been suspended", Global Affairs says on its website.