The North Korean Olympics ferry sailed past sanctions temporarily into Mukho port in the South's eastern city of Donghae, an hour's drive from the main Olympics venue in Pyeongchang.
Talks at the border village of Panmunjom focus on appearances by North Korea's state-run artistic performers and when and where in South Korea they would perform, officials say.
Pyongyang reiterates that the military drills launched by the US and South Korea are a provocation and are intended to mount a surprise nuclear pre-emptive strike against North Korea.
Kim Jong-un promises to make a "mentally deranged" Trump pay dearly for his threats.
China's ambassador to the United States says Beijing would never accept North Korea as a nuclear weapons state.
The UN Security Council this week voted unanimously on a US-drafted resolution and a new round of sanctions against North Korea in response to its latest and most powerful test, banning North Korea's textile exports and capping fuel supplies.
US originally pushed for a strict oil embargo and a ban on the assets of North Korean leader Kim Jong-un, but diplomats say the asset freeze has been dropped from the resolution before the vote.
UN Security Council emergency session condemns North Korea over its nuclear ambitions, with US saying 24 years of negotiations had failed.
Tremors felt by a nuclear test carried out by Pyongyang are estimated to be ten times more powerful than their last, Japan and South Korea claim.
The UN Security Council has said it was of "vital importance" that North Korea take immediate, concrete actions to reduce tensions.
A prominent Chinese tabloid owned by the Communist Party's official 'People's Daily' says China should remain neutral if the DPRK targets the United States. But it also warns that a US first strike would bring China to the defence of its neighbour.
The latest launch comes less than a month after the North conducted its first ICBM test in defiance of years of efforts led by the United States, South Korea and Japan to rein in Pyongyang's nuclear weapons ambitions.
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