South Korea accommodated both the North Korean government officials and members of the art troupe at the Wakerhill hotel in Seoul.
Speaking on his way home from the Winter Olympics in South Korea, Mr Pence said there was "no daylight" between the two allies on the issue. Officials in Tokyo believe Pyongyang is trying to drive a wedge between the USA and its two allies, and fear that Mr Moon - a known pacifist - will rush headlong into talks with the North.
On Saturday, the presidential office announced that North Korean leader Kim Jong-un has invited President Moon Jae-in to visit Pyongyang at the earliest convenient date.
In dispatching the highest level of government officials the North has ever sent to the South, Kim Jong Un revealed a sense of urgency to break out of deep diplomatic isolation in face of toughening sanctions over his nuclear program, analysts say.
Pence is playing "right into North Korea's hands by making it look like the USA is straying from its ally and actively undermining efforts for inter-Korean relations", said Mintaro Oba, a former diplomat at the State Department specialising in the Koreas, who now works as a speechwriter in Washington.
Another demonstrator shouted: 'Having these red communists in the heart of Seoul is an utter humiliation!'
The game was a mismatch pretty much from the opening faceoff, though you would have never known it by the constant noise made by tightly choreographed North Korean cheerleaders and the much looser fans from the South.
Still, it wouldn't be South Korea if people weren't asking the perennial question when it comes to North Korea changing gears and showering its rival with apparent affection: What's in it for Pyongyang? This would be the first summit between the two Koreas in over a decade.
Contact was inevitable. And the unified entry of the Korean athletes at the opening ceremony presented a truly cringeworthy moment.
U.S. Vice President Mike Pence, who has returned to Washington after attending the opening of the Winter Olympics in Pyeongchang, said the United States, South Korea and Japan were in complete agreement on isolating North Korea over its nuclear weapons programme.
At the 2003 University Games in Taegu, accusations that local right-wing groups had "ransacked" bedrooms and stolen underwear at the North Korean delegation's hotel prompted the cheerleaders to down pom-poms in protest.
The North's presence has dominated the headlines in the early days of the Olympics, with all eyes turning to Swiss-educated Kim Yo-jong, believed to be 30, who is among her brother's closest confidantes.
Even if there are more meetings between the rivals after the Games, accomplishing something is another matter.
Moon said the two Koreas should "work together to create the environment to make it happen", a spokesman said. "But I love North Koreans". The rhetoric war between North Korea and the Trump administration hasn't skipped a beat in Pyeongchang.
Also at that game: the famed cheer squad from North Korea - more than 100 identically dressed women who sing, perform choreographed moves and cheer on their team.