The news comes amid rising tensions between Washington and Pyongyangover the North's nuclear ambitions.
That deal did not last long, however, with North Korea two months later unsuccessfully attempting to launch what it claimed was a rocket to put a satellite into orbit.
South Korean President Moon Jae-in has encouraged the participation of North Korea at the Pyeongchang 2018 Winter Olympic Games during a speech here at the Opening Ceremony of the 2017 World Taekwondo Championships.
On Friday a South Korean military official told local news service Newsis the army is "keeping a close watch" on the development and that it is investigating the plausibility of an intercontinental ballistic missile engine test. However, during the campaign, Trump was largely spared criticism from North Korea - in one instance, a state media outlet praised him as "wise".
North Korea's last rocket engine test came in March and was apparently timed to coincide with the visit of US Secretary of State Rex Tillerson to Beijing, where he warned that regional tensions had reached a "dangerous level".
USA troops in South Korea began the the installation the THAAD (Terminal High Altitude Area Defense, formerly known as Theater High Altitude Area Defense) a day after the North Korean regime celebrated the 85 anniversary since the founding of its military with massive live-fire drills with conventional weapons.
Also on hand was North Korea's top sports official Jang Woong, the country's sole International Olympic Committee member, together with a North Korean delegation of athletes.
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North Korea has carried out five nuclear tests and is said to be preparing a sixth.
A North Korean taekwondo demonstration team arrived in South Korea on Friday for its first performances in the rival country in 10 years.
To affirm the unassailable rule of the Kim dynasty, even at the expense of its own people, the discomfiture of its neighbors and the misgivings of the world, North Korea asserts the freedom to misgovern and project itself without interference.
The remarks came in reaction to a question by a USA journalist in a recent interview with South Korean President Moon Jae-in, in which the interviewer from CBS stated it was not clear whether U.S. President Donald Trump would "agree to allow" his South Korean counterpart to negotiate with the North Koreans.
"I am a believer in dialogue, but I also know that dialogue is possible when we have a strong national defense", Mr. Moon was quoted as saying from the missile test site.
"If a North Korean delegation takes part in the Pyeongchang Winter Olympics, I believe it will greatly contribute to realising the Olympic values of friendship and peace".
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