Nevertheless, according to state news agency KCNA, the North has no intention of meeting USA officials during the Games - but did not rule it out either. Only 10 of them will compete for their country at the Games, with another 12 on the roster of a unified Korean women's ice hockey team.
In the meeting with US Vice President Mike Pence Thursday evening that went on longer than scheduled, Moon said that his presence is a reaffirmation of the strength of the South Korea-US alliance, and said that Washington's unwavering position on North Korea contributed to inter-Korean talks.
Pence had not explicitly ruled out the possibility of contact with the North Korean delegation, simply saying on Monday that the US had not sought out a meeting but remained open to "see what happens".
South Korean tours to the Mt Kumgang resort were closed after a South Korean tourist was shot by a North Korean guard there in 2008.
Some 13,000 troops took part in the one-and-a-half hour event, watched by 50,000 spectators, with Kim Jong-un waving to the crowd, Yonhap said.
The North's official Korean Central News Agency (KCNA) said the art troupe, led by Hyon Song-Wol, head of the Samjiyon Orchestra, would hold a "congratulatory performance" for the Games in South Korea.
"By sending key figures like his sister, Kim Jong-un is aiming to send a signal to the South that it is giving more weight to inter-Korean ties while driving a wedge between South Korea and the United States", said Kim Sung-han, a former South Korean vice-foreign minister.
Pyongyang on Monday informed Seoul that Kim Yong Nam, the highest-level North Korean official among those traveling to the South, would be its chief delegate to the PyeongChang Olympics. She would be the first member of North Korea's ruling family to cross the border. US Vice President Mike Pence - who this week promised "the toughest and most aggressive round of economic sanctions on North Korea ever" - arrived in the mountain resort of PyeongChang today.
"We will not allow North Korean propaganda to hijack the message and imagery of the Olympic Games", Pence said.
Pence was meeting President Moon on Thursday evening. The North's only airline, Air Koryo, is also blacklisted.
The Kim Jong Un regime also proudly paraded many of its weapons of war -including two different versions of its intercontinental ballistic missiles, believed to be capable of reaching the United States.