He is congratulating South Korea on hosting the games and pledges continued US support to address the North's nuclear threat.
The two Koreas, which remain technically at war, have cycled through countless periods of chill and thaw since their division 70 years ago.
Pence was in close proximity to the North Korean party both at the VIP reception and later, watching the opening ceremony from Moon's box, which included Kim Yong Nam and leader Kim Jong Un's sister, Kim Yo Jong.
Saturday's meeting also involved the North's ceremonial head of state, Kim Yong- nam, who led what apparently turned out to be a 21-member delegation to the opening ceremony of the PyeongChang Olympics on Friday.
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After arriving at the South's ultramodern Incheon International Airport- the North's flagship airline is subject to sanctions - she travelled to Pyeongchang for the opening ceremony, where the North and South Korean athletes marched together behind a blue-and-white "unification" flag for the first time in more than a decade.
A high-level North Korean delegation including leader Kim Jong Un's sister has arrived at a train station in Pyeongchang hours ahead of the opening ceremony of the Winter Olympics.
Yo-jong's South Korea trip was especially surprising, as she is the only member of the communist state's ruling family to have visited the South, at least since the end of the 1950-53 Korean War. These officials said that while Pence did not greet Kim Yong Nam, he didn't deliberately skip over him.
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Kim Jong Un wanted to meet Moon "at an early date", a spokesman for the Blue House said.
Pence insisted, "There is no daylight between South Korea and the United States".
A spokesperson for the vice president said that Pence did not come across the North Korean delegation during the reception.
In stark contrast, two kinds of kimchi - the fermented cabbage that features in every Korean meal - were on the menu for lunch, a Blue House official told AFP, one mild Northern style version and a spicier Southern recipe.
Moon's desire to engage North Korea was in contrast to his US ally. As the head of North Korea's parliament, he became the most powerful North Korean to visit their southern neighbors in 65 years, per Telegraph. The North has also sent a several hundred women-strong cheering squad, an orchestra with singers and dancers and a demonstration taekwondo team that will perform in Seoul and places near the Olympic venues.
After touring the grounds of the Cheonan Memorial with North Korean defectors and Fred Warmbier, Pence told reporters that Moon not only supports the latest round of sanctions against North Korea - part of the U.S.'s "extreme pressure campaign", but credits the sanctions with forcing the imminent inter-Korean dialogue during the Olympics.
The North Korean delegates later Saturday may attend the debut of the first-ever inter-Korean Olympic team at the women's ice hockey tournament in Gangneung.