"We hope that President (Moon) could leave a legacy that would last over generations by leading the way in opening a new era of unification", she said, according to Moon's office.
South Korean President Moon Jae-in has been using the Games in his efforts to break the ice with the North and pave the way for talks over the North's weapons programme. Moon warmly shook hands with her and later held talks with her in Seoul.
Following the opening ceremony of the Winter Olympics, a number of mainstream media outlets have published pieces that have painted North Korean dictator Kim Jong Un's sister in a positive light.
North Korea's Kim invites South Korean president for summit
"They know what happened and this is a usual thing during the Olympic Games".
North Korean leader Kim Jong Un's invitation to Mr Moon for a summit in Pyongyang has also left Tokyo anxious.
But the North was still welcomed with open arms to what South Korean President Moon Jae-in called "Olympic games of peace" and the US appeared to be the one left out in the cold.More news: MI officer shot during barricaded gunman incident
North Korea is sending 22 athletes, including the Alpine skiers, to Pyeongchang thanks to special entries given by the International Olympic Committee amid rare reconciliation mood between the rival Koreas.
US officials have been urging South Korea to be cautious in its rapprochement with the North - a point Pence drilled home in private meetings with Moon on Thursday. It warned against agreeing to talks before North Korea scrapped its nuclear program, saying it would only "benefit the enemy".
Kim Yo Jong and the other North Korean officials are ready to fly back to Pyongyang aboard leader Kim Jong Un's private jet. "North Korea is probably trying to give the impression that it is taking the lead in dialogue".More news: US Vice-President Mike Pence raises prospect of talks with North Korea
Bach told Reuters in an interview on Monday he would make the visit on the North's invitation as part of an agreement between the International Olympic Committee and both North and South Korea.
By also sending a youthful, photogenic individual who would surely draw worldwide attention at the Olympics, Kim might have also been trying to construct a fresher image of the country, particularly in face of US efforts to use the Olympics as an occasion to highlight the North's brutal human rights record.
She stood alongside the North Korean singers from the ensemble and performed "Our Wish" together, a song that yearns for the reunification of the two Koreas.More news: Kim Jong-un Invites South Korean President to Pyongyang
"The grievances that the world has about North Korea are very legitimate".
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