South Korean President Moon Jae-in is likely to meet the delegation but the White House ruled out the possibility of talks between Kim and USA representatives.
If this failed, U.S. President Donald Trump said "phase two" could be "very, very unfortunate for the world".
South Korea has agreed to pay the $2.64 million (£1.89 million/€2.15 million) bill for North Korea's participation the Winter Olympic Games from its Ministry of Unification budget.
"In the case of North Korea, because of [United Nations] and worldwide sanctions.the only country where they can knock on the door and get an answer is the South", Sung-chul said. Apart from Friday's events, Trump is expected to stay away from politics, and will instead spend her time attending Olympic events.
Family members of the dead sailors and opposition parties angrily denounced Moon's decision to host Kim Yong Chol, vice-chairman of the ruling Workers' Party's Central Committee. Washington has said the US delegation, led by Ivanka, is unlikely to meet with the North's delegation, but they might have contact behind the scenes, according to some foreign policy experts.More news: Students, Parents, Teachers Implore President Trump to Ensure School Safety
It is not clear where the parties are held, and it appears that she is talking more about the cheerleaders' lives back in North Korea, rather than at the Olympics.
The visit by Kim Yong Chol, who led an eight-member high-level delegation that crossed the Demilitarized Zone in the morning, is the final piece of the Games-led diplomacy that has dominated headlines from Pyeongchang.
Sweden is in its fourth straight gold medal game, already claiming two golds and a silver to go with the bronze it won in 1998.
Tensions may have eased on the Korean Demilitarized Zone, but North Korea's state-run media has opted not to broadcast the Olympics.
Jinmi, who is now one of the 31,000 North Korean defectors who have resettled in the South, said she was lucky because of the support of people like her sister who urged the defector to pursue her studies rather than making a living in "illegal markets" in the North.
President Donald Trump's daughter Ivanka Trump has arrived in South Korea where she'll lead the United States delegation to attend the closing ceremony of the Winter Olympics in Pyeongchang this weekend. "North Korea, accept the responsibility for the atrocity and apologize".More news: 1 dead in double stabbing at MA library
The differences in how the USA and South Korea hope to achieve denuclearization were also apparent during the banquet.
During his meeting with Ivanka Trump, who is considered by many to be a moderating influence on her father, Moon is expected to emphasize strong support for the US alliance and perhaps also make the case for increased engagement efforts with North Korea.
"The Security Council has done admirable work to address the threat of North Korea".
U.S. president Donald Trump has rolled out fresh sanctions against North Korea-linked shipping assets, hailing the package as the toughest measures levied on Pyongyang.
He even alleged North Korean officials travelling with their athletes will actually make up stories to tell Pyongyang about why the team lost.More news: Central bank loans ABLV almost 300 million in a week
- Blake Bortles agrees to three-year, $54 million extension with Jaguars
- Mourinho forecasts 'amazing' period for Manchester United
- Syria war: UN Security Council approves 30-day ceasefire
- Madhav Slams Tharoor for Comparing NPP with 'Wagging Tail' of BJP
- Wisconsin woman charged in 3 infant deaths from the '80s
- UN Security Council Demands Temporary Cease-fire In Syria
- North Korean media blacks out the games
- Antonio Conte backs 'wonderful' Andreas Christensen to become Chelsea captain
- China slams new USA sanctions on North Korea
- U.S. schools need 'offensive capability': Donald Trump