The two Koreas will compete as a unified team in the Olympics for the first time, though they have joined forces at other international sports events before.
North Korea will send a delegation of more than 400, including 230 cheerleaders, 140 artists and 30 Taekwondo players for a demonstration, a joint press statement released by Seoul's unification ministry said, adding the precise number of athletes will be hammered out after discussions with the IOC.
Prior to the Games, the sides will carry out joint training for skiers at the North's Masik Pass resort and a cultural event at the Mount Kumgang resort, for which Seoul officials plan to visit the sites next week.
The delegation is expected to begin arriving in South Korea on Jan. 25, the statement said.
The North will separately send a 150-strong delegation to the Paralympics. Twenty nations meeting in the Canadian city of Vancouver agreed on Tuesday to consider tougher sanctions to press North Korea to give up its nuclear weapons and U.S. Secretary of State Rex Tillerson warned the North it could trigger a military response if it did not choose dialogue.
Japanese Foreign Minister Taro Kono said the world should not be naive about North Korea's "charm offensive" over the Olympics.
"It is not the time to ease pressure, or to reward North Korea," Kono said. "The fact that North Korea is engaging in dialogue could be interpreted as proof that the sanctions are working."