US Vice-President Mike Pence has skipped a dinner at which he was due to share a table with North Korea's ceremonial head of state Kim Yong-nam.
Mr Pence briefly encountered Mr Kim but they tried to avoid directly facing each other, Yonhap news agency reports.
Later South Korean President Moon Jae-in shook hands with North Korean leader Kim Jong-un's sister, Kim Yo-jong, at the Winter Olympics opening ceremony.
The Games are taking place amid tension over North Korea's nuclear programme.
Mr Yong-nam did briefly meet with United Nations Secretary-General Antonio Guterres at the dinner. According to a UN spokesperson, Mr Guterres reiterated a hope for "peaceful denuclearisation" on the peninsula. But the US vice-president left the reception venue after five minutes, South Korea's Yonhap said.
While Mr Moon and Japanese Prime Minister Shinzo Abe both shook hands with Mr Kim, Mr Pence did not, South Korean officials said.
Media captionWhat we've seen of Kim Yo-jong from North Korean media
At the event Mr Moon said he hoped the Winter Olympics would be remembered as the "day peace began". He is due to meet the North Korean delegation for talks on Saturday according to Yonhap.
At the opening ceremony, Mr Pence, Kim Yo-jong and Kim Yong-nam were seated in close proximity to each other.
Mr Pence has brought to South Korea as a guest Fred Warmbier, the father of a young American who died after being released from prison in North Korea.
Who is Kim Yo-jong? The highest profile member of the North Korean delegation to the Games, she is the first immediate member of the North's ruling family to visit the South since the 1950-1953 Korean war.
Ms Kim, who is said to be very close to her brother, was promoted to the North's powerful politburo last year. North v South: A history of sport, bombs and diplomacy North Korea's cheerleading charm offensive She is on a US sanctions list over alleged links to human rights abuses in North Korea. Ms Kim is thought to be about 30 years old, around four years younger than her brother.
Image copyrightREUTERS
Image caption North Korea's Ms Kim shook hands with South Korea's Mr Moon at the opening ceremony
Her visit is being seen as a sign that Kim Jong-un is serious about improving ties with the South, the BBC's South Korea correspondent Laura Bicker reports. She adds that some are also speculating that Ms Kim might be bringing a message from her brother.
Meet North Korea's first family More on Kim Jong-un's sister How will the Koreas compete at the Games? Athletes from both North and South Korea marched under one flag at the opening ceremony, bringing spectators to their feet. They are also fielding a joint women's ice hockey team.
Alongside 22 athletes, Pyongyang has sent more than 400 delegates to the Games, including a team of cheerleaders and an orchestra. Image copyrightAFP/GETTY Image caption North and South Korean athletes marched under one flag at the opening ceremony
However the opening ceremony was not shown on North Korean state TV, which was broadcasting patriotic songs and slogans celebrating industry and the armed forces.
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