The North had initially planned to send a seven-member advance team headed by the leader of a popular all-female Western-style band for a two-day visit from today to inspect venues for proposed performances in Seoul and the eastern city of Gangneung.
Hyon Song-Wol, reportedly an ex-girlfriend of leader Kim Jong-Un, would be the first North Korean official to visit the South in four years.
But Pyongyang said yesterday it had suspended the plan, giving no reason.
Hyon was the subject of lurid 2013 reports in the South that she and around a dozen other state musicians had been executed for appearing in porn movies.
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Pyongyang angrily denied the claims and Hyon later appeared on state television.
The two Koreas have agreed to march together under a unification flag -- a pale blue silhouette of the Korean peninsula -- at the opening ceremony of the Pyeongchang Winter Olympics on February 9, and to form a unified women's ice hockey team.
The conservative opposition Liberty Korea Party has strongly objected to the agreement, arguing the North is seeking to exploit the South's Olympics for its own propaganda.
"The Pyeongchang Olympics is becoming like a Pyongyang Olympics", its leader Hong Jun-Pyo said yesterday.
A Realmeter poll released Thursday showed only 40.5 per cent of South Koreans supported the joint march under a unification flag.
A larger share -- 49.4 per cent -- were in favour of the neighbours holding their own national flags.