Meanwhile, North Korea is sending Kim Yong Nam, the head of the country's parliament, who is one of the most senior North Korean officials to ever visit South Korea.
The political point-scoring between the US and North Korea started well in advance of the Games.
"Past experience has taught us that complacency and concessions only invite aggression and provocation. I will not repeat the mistakes of past administrations that got us into this dangerous position."
On Sunday, an aide to Pence reportedly said the Vice President will deride any notion of normalizing North Korea's relationships with the outside world while he is in South Korea for the Olympics.
"Otto was systematically tortured and intentionally injured by Kim Jong [Un] ... Kim, and his regime. This was no accident," he told CNN in September.
Warmbier was taken into custody by North Korean authorities during a five-day sightseeing tour of the reclusive state, which accused him of stealing a political poster from a restricted floor on his hotel.
When Otto arrived back in the United States he was in a persistent vegetative state. North Korea claimed he had contracted botulism while in prison.
Fred Warmbier's attendance at the Games will likely see him placed in close proximity to some of North Korea's top politicians as they welcome a joint Korean team marching under a flag representing a unified peninsula.
Previously, Pyongyang has been sensitive to criticism around North Korea's participation in the Games, canceling a joint cultural performance that was to be held in advance of the Olympics in response to unflattering coverage by the South Korean media.
Rodger Baker, vice president of strategic analysis at Stratfor, said the North's recent rapprochement is seen in the US "not as an opening towards dialogue but rather as a delaying and stalling tactic to weaken the US-South Korean relationship."
North Korea has been clear that current talks will not encompass, or move towards discussing denuclearization, and Baker said Washington is keen to demonstrate that its approach to Pyongyang has therefore not changed.
Improved relations between the two Koreas is something the US is uncomfortable with under the current conditions, said Anwita Basu, an analyst at the Economist Intelligence Unit (EIU). "These games are being treated as a platform for diplomatic warfare by both the US and North Korea ... tensions will certainly rise as a result," she said.
Diplomatic displays
For its part, North Korea has also offered confused messaging. It said this weekend the country's delegation to the Olympics will be led by Kim Yong Nam, chairman of the standing committee of the Supreme People's Assembly, the head of the country's parliament.
In a statement, South Korea's Unification Ministry said Kim Yong Nam's presence shows Pyongyang's seriousness in seeking to improve inter-Korean relations and the successful hosting of the Winter Olympics.
Baker said Stratfor anticipates North Korea "will continue (missile) testing this year, they're too close to the end of the program to simply stop and give up."
This could include more ballistic missile launches, submarine launches, or even an above-ground nuclear test over the Pacific, he added.
Peace Olympics?
One player who risks being overshadowed in all this political gamesmanship is South Korea.
Diplomatic wins may also be limited. Baker said Seoul's "immediate concern is to ease the sense of imminent conflict on thepeninsula" but the recent moves by the Trump administration risk undermining "any even short-term gains the South Koreans may be able to get."
The situation puts South Korea in a "delicate bind," said Basu. "The US are not happy about normalization in the inter-Korean relationship but at the same time, US military presence in the Korean Peninsula is vital and cannot be easily withdrawn."
CNN's Sophie Jeong and Will Ripley contributed reporting.