Kim Jong Un has invited the South Korean president to visit him in Pyongyang in what could be the first summit between the leaders of the two Koreas since 2007.
The Sunday edition of Rodong Sinmun, the newspaper of North Korea's ruling party, ran a front-page story on the high-level delegation from the North meeting with Moon Jae-in at the presidential palace in Seoul on Saturday.
Meanwhile, US Vice President Mike Pence has insisted the United States, South Korea and Japan are in complete agreement over their strategy of isolating the North.
The North's participation has been generally welcomed, but right-wing protesters have shown up at several venues to burn North Korean flags and tear up portraits of Kim's brother. Warming ties between the Koreas could complicate Seoul's ties with Washington, which wants to maximize its pressures on Pyongyang.
Pence sat stone-faced in his seat as Moon and North Koreans officials stood together with much of the stadium to applaud their joint team of athletes.
Japan does not participate in the military exercises, but it is within reach of North Korean missiles and relies heavily on USA forces and their readiness to deal with that threat.
Pence said he and Moon reiterated to each other "that we will continue to stand strong and work in a coordinated way to bring maximum economic and diplomatic pressure to bear on North Korea".
"It is absolutely necessary for the North and the United States to engage in talks at an early date", he cited Moon as saying. During an Olympics reception and at the sporting event's opening ceremony, Pence was not trying to avoid North Korean officials in attendance, the senior administration official told reporters on Saturday, adding that he was trying to ignore them.
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Moon's office said he told Abe that the talks between the Koreas would not disrupt global efforts to deal with North Korea's nuclear program. Global alarm at the rapid advance of nuclear-armed North Korea's weapons technology rose further a year ago when the regime tested its Hwasong-15 ballistic missile theoretically capable of hitting the mainland U.S., in a challenge to Washington that has threatened to "utterly destroy" the regime in the event of an attack.
South Korea says North Korea has withdrawn a request that the South provide fuel to a North Korean ferry that transported more than a 100 artists for performances marking the Pyeongchang Winter Olympics.
Always flanked by thick groups of bodyguards, Kim Yo Jong commanded the attention wherever she went, walking among throngs of journalists with a quiet poise and occasionally shooting an enigmatic smile at cameras.
Still, it wouldn't be South Korea if people weren't asking the perennial question when it comes to North Korea changing gears and showering its rival with apparent affection: What's in it for Pyongyang?
So as pleasant as that lunch between North and South Korean leadership may have been, it won't mean much until diplomats from the USA settle in for some of the local delicacies. The U.S. and the North should quickly resume dialogue, he said. In it, Kim Jong Un highlighted several huge intercontinental ballistic missiles, which were successfully flight tested three times a year ago and could reach deep into the US mainland when perfected.
It was very rare for a South Korean president to hold formal talks with high-ranking North Korean officials, as the two countries remain technically at war after an armistice stopped the 1950-53 Korean War.
Landing without a valid visa, he was interrogated for five hours by North Korean customs officials and fined $500.
At the Blue House meeting, the delegations shared a lunch of dried pollack dumpling soup, a regional specialty of the only divided province on the Korean peninsula, and soju, a spirit popular on both sides of the heavily militarized border.
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Yo-jong's visit to the South was the first visit by a member of the ruling Kim family ever since the Korean War ended in 1953. The South Korean president also stressed the need for the communist North to resume its dialogue with the United States.
Meanwhile a joint hockey team and a cheerleading squad has generated warm feelings, at least at the Olympics . Kim Yo Jong told the South Korean President: "We would like to see you at an early date in Pyongyang".
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This was met with worldwide sanctions as well as a flurry of insults between President Donald Trump and North Korean state media . Pence and the North Korean delegation sat near each other at the ceremony but did not acknowledge or speak to each other.
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But the North was welcomed with open arms to what South Korean President Moon Jae-in called "Olympic games of peace". If Moon accepts Kim's offer to come to the North, it will be the third summit meeting between the two Koreas.
Abe also said, however, that the two leaders had agreed the two countries needed to create a "future-oriented" relationship. South and North Korea technically remain at war, since the Korean War ended with an armistice, not a peace treaty.
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