"I'm sure that this will be a very emotional moment not only for all Koreans but also for the entire world", Bach said.
The new proposal came less than 24 hours after North Korea canceled the delegation's visit. The North Korean athletes will be handed quota places, a rarely-used form of wild card, to allow them to compete in ice skating, skiing and ice hockey.
Bach said all parties, including the Pyeongchang organizing committee, held a full day of preparation meetings Friday.
South Koreans seem generally happy they'll see the North Koreans at their, but aren't as pleased about sharing a team with them.
North Korea's unexpected participation, negotiated in talks at the heavily fortified border between the two nations since the start of the year, has been hailed as a diplomatic breakthrough that could herald peace on the Korean Peninsula.
Game rosters are set at 22, with 20 skaters and two goalies, and the head coach Sarah Murray will have to pick at least three North Koreans for each match.
All parties signed the Olympic Korean Peninsula Declaration after the meeting, which finalizes the necessary details of the DPRK's participation in the games. "Such an agreement would have seemed impossible only a few weeks ago", International Olympic Committee chief Thomas Bach said in Lausanne, Switzerland.
Olympics organizers have welcomed the agreement between the two Koreas to unite athletes at the Winter Games in Pyeongchang, and promised that "much more exciting initiatives" promoting Korean unity will emerge this weekend. With respect to fair play and the other competing teams, only 22 players will be entitled to play in each game, as is the rule for all participating teams.
Unified women's ice hockey - 12 players and one official from North Korea will be added to the existing South Korea squad of 23 players.
Prior to the Games, the sides will carry out joint training for skiers at the North's Masik Pass resort and a cultural event at the Mount Kumgang resort, for which Seoul officials plan to visit the sites next week.
It came as a pleasant surprise to the world - perhaps the United States of America apart - when the porky lunatic Kim Jong-un announced that a handful of athletes, plus dignitaries and some undoubtedly entertaining singers and dancers would cross the border and perform. The Koreas previously marched together at the Opening Ceremonies in 2000, 2004 and 2006.
Choi pointed to the comments of Prime Minister Lee Nak-yon, who was forced to apologize after saying that the South Korean women's hockey team was out of "medal range" anyway while defending the government's decision to create the unified team.
A delegation of 150 North Korean athletes and supporters will attend the Paralympics, Seoul's Unification Ministry said.
He said: "It is not the time to ease pressure, or to reward North Korea".