This comes after a public handshake between Moon and North Korean delegation head Kim Yo-jong, the sister of Kim Jong-un. The senior USA official said Pence was not trying to avoid the North Korean officials but rather ignore them.
During previous attempts at ending the crisis the United States and its allies have provided financial incentives to North Korea or agreed to suspend military exercises with South Korea.
Security for anything involving the North Koreans has been exceptionally tight.
The North Korean artists performed Thursday in Gangneung, a coastal city that will host the skating, hockey and curling events during the games, and are to perform again in Seoul.
Only 22 will dress to play Saturday night, leaving Murray the hard task of deciding whether to play any of the North Koreans or sit some of the South Koreans she has worked with for many weeks.
International Olympic Committee President Thomas Bach then handed the podium to Moon, who declared the Olympics officially open.
The official objective of both North and South Korea is still reunification.
Most notably, Kim sat directly behind U.S. Vice President Mike Pence at Friday night's opening ceremony in Pyeongchang, creating the unique image of two top officials whose governments have been locked in a loud argument, suddenly seated just feet away from each other. It was a selfie seen around the world.
His doctors told reporters at the time that Otto had suffered from extensive brain damage for more than a year and that he had been in a state of unresponsive wakefulness and wasn't aware of his surroundings. The North Korean delegation also included the country's 90-year-old head of state, Kim Yong Nam. The riverside facility is named after late U.S. Army commander Walton Walker, who's considered a war hero in the South for his battles against the North during the Korean War.
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It said students' education wouldn't be disrupted and asked parents "for your continued prayers" for the school. Morales sent a note home to parents on Thursday, describing the decision as 'difficult and necessary'.
Vice President Mike Pence is in South Korea with the rest of these officials for the Winter Olympics, but his visit has been overshadowed by the diplomacy going on.
From the participation of Russian athletes in the wake of doping scandals, and icy Siberian winds potentially rendering it the coldest Games ever, to North Korea's inclusion and free condoms, here are five things to know about PyeongChang 2018.
The Opening Ceremonies had a lot of other memorable moments, too.
South Korean television drew that exact parallel, noting that Kim Jong Un had sent his sister to the opening ceremony of the Olympic Games, while President Donald Trump was sending his daughter to the closing.
Neither Pence nor Abe took part in a group photo of the leaders at the reception, in which Kim stood behind Moon.
But Mr Moon, a liberal who has always wanted to engage the North, will also have to convince a good portion of his own people who are deeply wary about North Korean intentions.
Look at her unusual handwriting, they said after Kim Yo Jong wrote a message in the guest book at South Korea's presidential Blue House, which - of course - then appeared everywhere. The two Koreas have been divided since the conflict ended in a ceasefire in 1953, and the democratic South has risen to become the world's 11th-largest economy, while the North has stagnated under the Kim family's rule.
Some members of Abe's ruling Liberal Democratic Party opposed his visit to South Korea, due to the Moon administration's stance on the comfort women issue.
She shook hands with Moon and smiled faintly as the South Korean leader entered a meeting room at the Blue House on Saturday.
The 1994 Games in Lillehammer, where temperatures plunged to -2.7C (27F), holds the record, but the mercury is not expected to creep above zero during the first few days of competition in South Korea.