During recent high-level talks, the two sides agreed to hold further talks before early November but Pyongyang, the North Korean capital, hinted at calling it off, citing cross-border tensions.
Just a day before the talks were held, the two nations traded machine gunfire across their tense border after Pyongyang apparently attempted to shoot down balloons carrying anti-Pyongyang propaganda leaflets floated by civic activists.
After some of the North Korean machine gunshots landed south of the border, South Korean troops fired back in response.
North Korea, taking part in the Games for the first time, are represented by nine athletes competing in archery, athletics, table tennis and swimming.
Their delegation, comprising of 29 members, arrived in Incheon last week.
Approximately 4,500 athletes from 42 countries will be competing in 23 sports at this year's Games, which are due to start tomorrow and end on October 24.
Training for the competition began earlier this week at the Incheon Asiad Main Stadium, the Songdo Global University Gymnasium and the Munhak Park Tae-hwan Aquatics Centre, named after the South Korean Olympic champion.