The meeting was a follow-up to last week's high-level talks during which North Korea agreed to send a delegation of athletes, ranking officials, an art troupe and others, to the February 9-25 PyeongChang Olympics in the South.
The two Koreas last held a joint musical performance in August 2000 in Seoul amid upbeat cultural exchanges following the first inter-Korean summit two years earlier, a South Korean unification ministry told Reuters.
In a statement Monday, negotiators said Pyongyang would also send the 140-member Samjiyeon Orchestra as part of its delegation.
The North has said its delegation to the Winter Games in Pyeongchang would include artists, officials and journalists, as well as athletes.
North Korea on Sunday slammed South Korean President Moon Jae-in for praising U.S. roles in pressuring Pyongyang to the recent inter-Korean talks.
Those have been high on the flashpoint peninsula as the North staged a flurry of nuclear and missile tests since past year, and Mr Kim traded threats of war and personal insults with United States president Donald Trump.
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South Korea asked its neighbour to halt hostile acts that stoke tension on the peninsula, and in return, the North agreed that peace should be guaranteed in the region, the South's unification ministry said in a separate statement.
The hermit kingdom's leading girl band, Moranbong, which is reminiscent of the British girl band "The Spice Girls", seems to be making a play for an appearance at the Winter Olympics.
"I like the idea of supporting any kind of cooperation between North and South Korea".
Monday's meeting is seen as another step towards more substantive talks that could help defuse spiraling tensions in recent months that saw threats of nuclear attacks by North Korean leader Kim Jong-un.
Korean Culture Center recently conducted the competition which witnessed the participation of 22,022 students from more than 290 schools and 27 states and union territories.
That position which emphasised the preference for diplomacy was furthered given a boost with the latest dialogue effort which will hopefully lead to a peaceful resolution of the North Korean nuclear issue and the establishment of peace on the Korean peninsula, beyond next month's Winter Olympics. They will cross the truce village of Panmunjeom on the inter-Korean border.
In the article, the regime even threatens in a veiled way not to attend the PyeongChang Winter Olympics, underlining that "train and bus carrying our delegation to the Olympics are still in Pyongyang".