After cultural and dance performances and a parade by the athletes, Moon officially opened the biggest Paralympics in history.
Two North Korean skiers took part in the parade under their own flag, making them the first athletes from the North to compete in a Winter Paralympics.
It is the latest sign of an intense rapprochement between the North and South that began at the Winter Olympics in February.
The thaw prompted a flurry of diplomatic activity. In the latest development, US President Donald Trump Thursday agreed to hold a historic meeting with the North's leader Kim Jong Un.
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