However, the pivot towards reconciliation with North Korea could raise eyebrows in the U.S., where President Donald Trump's early days in office have been marked by heightened tension with the communist state.
With the new role, Taeyang will be in charge of performing the Olympic Winter Games' song, and promoting the global multi-sport event.
PyeongChang 2018 will take place from February 9 to 25 next year in PyeongChang, some 180 kilometers east of Seoul, and its neighboring sub-host cities in Gangwon Province. He also stated he believed that North Korea's Masikryong Ski Resort has the potential to be a fantastic Olympic venue.
"We are now reviewing all the ideas put forth by the government and we look forward to discussing this with the International Olympic Committee during their next visit", said Nancy Park, a Pyeongchang 2018 spokesperson.
This proposal was swiftly dismissed by Pyeongchang 2018, but organisers now appear open to discussing the possibility of North Korean hosting some events.
The championships, which will feature a performance by the North Korean taekwondo demonstration team, mark the first sports exchange between the Koreas since the liberal Moon took office in May.
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Moon was elected as the country's President on May 9, after a cronyism scandal led to Park Geun-hye being impeached.
South Korea gained a berth in the women's ice hockey event alongside seven other teams, but North Korea did not make it.
Moon, the son of refugees from North Korea, advocates greater dialogue with their neighbours. The minister said PyeongChang 2018 could be the "Peace Olympics" if North Korea was to participate.
No North Korean athletes have qualified for the 2018 games.
North Korean athletes have failed to qualify for any events at Pyeongchang, with the pairs figure-skating competition their only hope of representation if Do's plans for a joint ice hockey team idea fall through.