At the opening ceremonies Friday, Pence sat stone-faced in his seat as Moon and North Korean officials stood together with much of the stadium to applaud their joint team of athletes.
"This is the first time Mike Pence has been accused of being a snob", said an aide to the vice president, who was not authorized to speak publicly on the North Korean reports.
Trump has at times questioned the goal of further talks with the North after years of negotiations by previous USA administrations failed to halt the North's weapons programs.
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 the face of toughening sanctions over his nuclear program, analysts say.
During Mr. Pences visit, Mr. Moon assured the Vice President he would tell the North Koreans clearly that they would not get economic or diplomatic concessions for just talking, only for taking concrete steps toward denuclearization, the newspaper said. US President Donald Trump and the North Korean leadership traded insults as tensions rose. North Korean Jong Su Hyon had one of Korea's three shots in the opening period.
The North Korean diplomatic initiative comes amid growing global pressure, led by the United States, aimed at imposing maximum economic and diplomatic pressure on the regime.
To some, the fact that Pence didn't interact at all with Kim Yong Nam, the head of the North Korean Supreme People's Assembly, and Kim Yo Jong, sister of Kim Jong Un, despite being right next to them twice Friday evening represented a missed opportunity and snub by the Trump administration of close ally Seoul.
Erdogan says Turkish chopper shot down in Syria operation
The campaign followed Ankara's promises to " strangle " the new Border Security Force (BSF) in Syria . Kurdish news sources said the the helicopter was shot down in Afrin's Rajo district.
North Korea is sending 22 athletes, including the Alpine skiers, to Pyeongchang thanks to special entries given by the International Olympic Committee amid rare reconciliation mood between the rival Koreas.
North Korea has made clear that it does not intend to negotiate away its nuclear and missile programs in return for relief from worldwide sanctions.
"We don't want to speculate because we're still trying to find out what the root source is", said Nancy Park, a spokesperson for the Games organisers.
The handwritten invitation to President Moon was delivered by Mr Kim's influential sister, Kim Yo-jong, at a landmark meeting in the presidential palace in Seoul, as the Games opened on Saturday. During their meeting, she invited him to visit North Korea.
Pence's tweeted day-after position: "The U.S. will not allow the propaganda charade by the North Korean regime to go unchallenged on the world stage".
The file was an indication that Kim Jong-un was sending a message not as chairman of the Workers' Party but using his newest title as chairman of the Commission on State Affairs.
Around 75 North Korean cheerleaders dressed in matching red with white caps made noise during a preliminary game against Switzerland in Gangneung. It replaced the National Defense Commission, the most powerful office under his late father Kim Jong-il.