Showing a flair for the dramatic, Kim Yo Jong carried a blue folder with a personal letter from her brother, carefully placing it on a table where the delegation sat across from Moon and his aides.
It gives him "the rationale or the excuse to work on some moderation of the sanctions and possibly the scale and timing of the military exercises", said former South Korean Foreign Minister Han Seung-joo, in an interview. The two nations have marched together at an Olympics but this time have taken the extraordinary step of combining on the composition of the women's hockey team.
Pence spent the days leading up to the Pyeongchang Olympics warning that the North was trying to "hijack the message and imagery" of the event with its "propaganda".
Pence is viewing the short-track competition, in which eight Americans are participating.
The games are considered a hot bed for hacking attempts because of the massive number of people attending, according to security experts.
North Korea's decision to participate has eased tensions after months of saber rattling and missile and nuclear tests that have raised fears it's closer-than-expected to achieving its goal of developing a nuclear weapon that could reach the US mainland.
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A visit by Moon to the North would enable the first summit between leaders from the two Koreas since 2007, and would mark only the third inter-Korean summit to take place. So the maximum pressure campaign is going to continue and intensify.
North Korea has spent years developing its military, saying it needs to protect itself from USA aggression.
Kim is the first direct member of the ruling Kim family to visit South Korea since the Korean War.
Officials said she had now reached the epitome of being an Olympian.
"Having these red communists in the heart of Seoul is an utter humilation!" one shouted near the venue as dozens of others waved banners condemning both Moon and Kim Jong Un.
Moon's office says Kim's sister, Kim Yo Jong, came to the South as his special envoy.
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The discussions from Saturday's meeting weren't immediately released.
Pyeongchang: South Korea on Saturday investigated a mysterious internet shutdown during the Winter Olympics opening ceremony, which follows warnings of possible cyber attacks during the Pyeongchang Games.
NBC will release updated data with PyeongChang's full draw later on Sunday, one that will also account for the significant streaming audience.
Some set a North Korean flag on fire before police intervened, and others chanted "Let's tear Kim Jong-un to death!" as they ripped up posters of his portrait.
This item corrects that Kim Yo Jong is the leader's sister.
He said war had forged "the core of the bond" between the US and South Korea and that helps explains "why there is no daylight and there will be no daylight" between the two. The senior U.S. official said Pence was not trying to avoid the North Korean officials but rather ignore them.
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Based on that assurance, Mr. Pence was cited as saying he felt confident he could endorse post-Olympic engagement with Pyongyang.
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