North Korea has made clear that it does not intend to negotiate away its nuclear and missile programs in return for relief from global sanctions.
Kim Yo-jong and the North's honorary president, Kim Yong-nam, who officially led the delegation, were seen sitting next to the South Korean president on Sunday during the North Korean Samjiyon Orchestra's second concert at the National Theatre of Korea in Seoul.
She twice shook hands with South Korean President Moon Jae-in. Last week, the United States said it would ramp up sanctions.
Moon's government is clearly more optimistic than the Trump administration about the potential for the Koreas' cooperation at the Olympics to create the groundwork for substantial discussions.
Outside the stadium ahead of the unified Korea Ice Hockey team's first official match of the Olympics, young and old waved the flag as well. "So we had our own", Aussie aerial skier and two-time Olympian David Morris said in his video post to social media.
Moon joined Kim Yo Jong and other North Korean supporters Saturday in cheering for the team against Switzerland.
The joyous group flew their flag, which was white with the blue Korean peninsula in the middle.
Speaking to reporters on his flight home on Saturday, Pence said the United States, South Korea and Japan were in complete agreement on isolating North Korea over its nuclear weapons program.
Meanwhile, defense experts who analyzed Thursday's military parade in North Korea say it appears the country has a shortage of vehicles used for launching intercontinental ballistic missiles. North Korea has said its nuclear weapons are not for bargaining away.
"Then, and only then, will the world community consider negotiating and making changes in the sanctions regime that's placed on them today", Pence said after a meeting with Moon.
International Olympic Committee President Thomas Bach said the display sent "a powerful message of peace".
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