Despite recent global unrest, the two countries have not only agreed to walk together but will also have joint teams for certain events.
Both nations will form a combined women's ice hockey team ahead of the Pyeongchang games while skiers will train together in North Korea ahead of the Olympics.
The last time the joint flag was used was at the 2006 Winter Games in Italy. Despite the positive talks, the idea still needs clearance from The International Olympics Committee (IOC).
"We are sure that the Korean delegations will present their ideas and proposals at the meeting on Saturday in Lausanne. This will then enable the IOC to carefully evaluate the consequences and the potential impact on the Olympic Games and the Olympic competitions," reads a statement by the IOC.
The flag is a blue silhouette of the two countries on a white background.