Psy's performance was the high point of the spectacular show as the world's second-biggest multi-sports spectacle after the Olympic Games was kickstarted with customary fanfare, including fireworks and breathtaking visual effects.
Korean President Park Geun-hye declared the Games open amid thunderous cheers from a capacity crowd as dazzling fireworks lit up the evening sky.
The competing teams marched into the stadium in the final act of the evening. The Indian athletes trooped in after Iran with hockey skipper Sardar Singh leading out the smartly-dressed contingent.
The flame was lit up by celebrated Korean actress Lee Young-ae, setting the stage for two weeks of action in the city -- the second Korean venue for the Games in the last 12 years.
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As is the custom, the event was divided into the informal and formal parts.
It began with a welcoming performance, lasting close to 80 minutes, to greet the spectators at the 60,000-capacity stadium that was filled to the brim.
The session was divided into three parts -- "Incheon, the magnet of dreams," "Incheon, where all of us become friends," and "Tomorrow, dreamed by all of us."
Initially a video introducing the 17th Asian Games and a promotion video introducing the major facilities was displayed on the big screen.
This was followed by a display of Korea's traditional drums and cymbal-type instruments before emcees Kim Sung-ju and Youn Soo-young came on stage.