That is the assessment of a former South Korean government minister and political experts who say the North has used the Games to drive a wedge between South Korea and its US ally and to potentially ease pressure on its sanctions-crippled state.

"North Korea clearly appears to be winning the gold", said Kim Sung-han, who served as Korea's vice foreign minister in 2012-2013 and who now teaches at Seoul's Korea University.

North Korea's Alpine skiing coach says it's an "honour" to compete at the Pyeongchang Winter Olympics, though he doesn't expect much from any of his athletes.

Kim's sister Kim Yo Jong, who is visiting South Korea as his special envoy for the Winter Olympics, conveyed her brother's invitation during a meeting at the presidential Blue House, officials from the Blue House said. It has shown no interest so far in negotiating over worldwide demands to give up its nuclear and missile programs.

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The warm North-South body language not only fanned talk of a split between Seoul and Washington, it contrasted with a cold encounter between South Korea and Japan, an ally in USA -led efforts to pressure North Korea to end its nuclear programme.

After North Korea stalled for months before even announcing that it would take part in the Pyeongchang Olympics, the Games have turned into an occasion for a stunning rapprochement on the Korean peninsula.

"Now is not the time to postpone US-South Korea military exercises". South Koreas presidential Blue House also had no immediate comment. Moon replied that it was not appropriate for Abe to have raised the issue, which he described as an internal affair. The U.S. and the North should quickly resume dialogue, he said.

"There is no daylight between the United States, the Republic of Korea and Japan on the need to continue to isolate North Korea economically and diplomatically until they abandon their nuclear and ballistic missile programme", Pence told reporters during the return flight to the United States. Officials in Tokyo believe Pyongyang is trying to drive a wedge between the U.S. and its two allies, and fear that Mr Moon - a known pacifist - will rush headlong into talks with the North.

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Hundreds of protestors gathered in Seoul on Sunday to vent their anger at what they called the "Pyongyang Games". A clash between South Korean and North Korean naval ships in 1999 left some 50 of the North's soldiers dead.

North Korea has made clear that it does not intend to negotiate away its nuclear and missile programs in return for relief from worldwide sanctions.

Some North Korean experts believe tough United Nations sanctions that are cutting off most of the isolated North's sources of revenue have added pressure on Pyongyang to engage further with Seoul.

It's by far the most sustained public presence for Kim, who had been something of a mystery to many South Koreans, despite her known role in North Korea's politburo.

North Korean leader Kim Jong Un speaks during the Second Plenum of the 7th Central Committee of the Workers' Party of Korea (WPK) at the Kumsusan Palace of the Sun, in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang October 8, 2017.

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Saturday's meeting was the first time a South Korean president hosted North Korean officials for a luncheon at the Blue House since November 2007, when late liberal President Roh Moo-hyun, the political mentor of Moon, invited then-North Korean premier Kim Yong Il following a meeting with government officials in Seoul.