Pence spent the days leading up to the games warning that the North was trying to "hijack the message and imagery of the Olympic Games" with its "propaganda."
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.
Kim Yo Jong offered an invitation from her brother for Moon to visit the North, in the strongest sign yet of an expanding diplomatic opening opposed by the US.
Pence said yesterday that the US would oppose talks between the two Koreas until the North agreed to open negotiations on ending its nuclear programme, and he was silent today on the news of the invitation.
Moon and Pence spoke while taking in the speedskating competition, but aides did not immediately say whether the invitation came up during the discussion.
At the opening ceremonies yesterday, Pence sat stone- faced in his seat as Moon and North Korean officials stood together with much of the stadium to applaud their joint team of athletes. White House officials stressed that Pence had applauded only for the American team, but Asia experts said the vice president's refusal to stand could be seen as disrespectful to the hosts.
But North Korea's terrible record on human rights and the growing threat from its nuclear weapons program appeared out of mind.
Even Japanese Prime Minister Shinzo Abe, who has shared the American skepticism of warming inter-Korean relations and pressed Moon against falling for the North's "smile diplomacy," greeted Kim Yong Nam.
Pence arrived late and stayed for just five minutes and did not interact with the delegation from the North at a Friday VIP reception for delegation leaders.
"The grievances that the world has about North Korea are very legitimate. But the Olympic moment that President Moon is trying to generate here is not a time to nurse those grievances," Jannuzi said. "It's a time to focus on messages of reconciliation and peace."
As it turned out, with the two Koreas celebrating a moment of unity, the United States was left outmaneuvered by an adversary and out of step with an ally.
Although South Korea has been a trenchant supporter of Trump's campaign of "maximum pressure" against North Korea, Moon has been keen to use the Olympics to pry open the door to better relations with its adversary. North Korea has jumped at the opportunity.
The downside for Washington is that it could expose growing differences with Seoul on the best way to deal with North Korea and achieve the ultimate goal of denuclearization.
The officials, who spoke on condition because they were not authorized to discuss the US approach publicly, also denied that Pence had been blindsided by the seating arrangement with the North Koreans in the row behind him, allowing Kim Yo Jong to be easily pictured in profile next to the vice president.
Although some White House aides were leery that the arrangement could produce less-than-ideal optics for Pence, there was no concerted effort to lobby their Korean counterparts for a change, in part out of fear of upsetting the Olympic hosts, said one administration official.
Pence also invited as his Olympics guest the father of US college student Otto Warmbier, who died after he was imprisoned by North Korea for stealing a propaganda poster.
But Schoff said that by pouring cold water on hopes for better inter-Korean relations, Pence's stance could be viewed as critical of Moon's outreach to North Korea.
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