Football diplomacy is seen as perhaps the best hope for improved relations between the two Koreas.
South Korea's co-hosting with Japan of the World Cup soccer finals has led to speculation that the North could also play a role.
The opening ceremony in Seoul on May 31 has also been seen as an ideal occasion for North Korean leader Kim Jong-il to make a much-anticipated visit to the South Korean capital.
Mr Kim's visit was one of the agreements reached at his historic summit in Pyongyang 18 months ago with South Korea's President Kim Dae-jung. But soured relations have meant many of the deals have yet to take place.
South Korea's Unification Minister, Hong Soon-young, said yesterday the realisation of Kim Jong-il visiting Seoul would be the primary goal of his Government this year. But Mr Hong also told ministry officials that for now he was not 'optimistic or certain about it'.
Observers believe President Jiang Zemin will be at the opening ceremony and Kim Jong-il will join him. China is North Korea's closest ally. North Korea may also host some of the games.