The North's official KCNA news agency said Vice-Premier Kim Yong Jin, Minister of Physical Culture and Sports Kim Yong Hun, and other officials and coaches as well as Yang's family attended the reception.
Yang, who won a bronze at the London Games, won gold in the men's 57kg freestyle category last week in Uzbekistan.
Vice-Premier Kim hailed Yang's "grit and pluck" which had demonstrated North Koreas' dignity and honour on the global stage.
"Yang owed his success to the wise leadership and deep loving care of Kim Jong Un who is energetically guiding the nation's sports," KCNA quoted him as saying.
North Korean leader Kim Jong Un is at the centre of a state propaganda drive to turn the isolated country into a "sports superpower" and has rewarded medal-winning athletes with luxury apartments, entertained flamboyant NBA hall of famer Dennis Rodman, and even tried his hand at coaching.
Yang expressed his gratitude for the North Korean leader for showing faith in him and said he was determined to keep on winning, "always bearing in mind the expectation of the party towards the sportspersons".
(Writing by Peter Rutheford; Editing by Greg Stutchbury)
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