Meanwhile, the summit planned for April 27 with South Korea President Moon Jae In on the southern side of the border's demilitarised zone would make Mr Kim the first North Korean leader to set foot in South Korea.
The all-female quintet was announced as part of a South Korean art troupe that will stage two performances in Pyongyang on Sunday and Tuesday.
Red Velvet expressed and opened up on having the opportunity to perform at the North Korea concert.
South Korean pop singers performed in the North during a past era of detente, but it was the first time for a North Korean leader to attend such a South Korean performance.
Kim Jong Un, his wife, Ri Sol Ju, and his younger sister, Kim Yo Jong were among the 1,500 spectators. The negotiations are expected to be followed by talks between Kim Jong-un and US President Donald Trump, set to occur by the end of May.
The rapid rapprochement was kicked off by last month's Winter Olympics in the South and comes after a year of heightened tensions over the North's nuclear and missile programmes, which saw Kim and Trump engage in a fiery war of words.
The inter-Korean summit, the third after meetings in 2000 and 2007, will be held on April 27.
The South Korean troupe will perform on its own at the 1,500-seat East Pyongyang Grand Theater on Sunday. Riding on the momentum, North Korea is set to hold talks with the United States on denuclearization before the end of May.
This year's drills feature fewer strategic weapons such as a nuclear-powered aircraft carrier, Seoul's military has said.
One of the most closely watched acts was Red Velvet, part of the South's hugely popular K-pop phenomenon that has taken audiences in Asia and beyond by storm in recent decades.
It comes as one of the band's members, Joy, copped criticism after she pulled out of the rare performance following a schedule clash.
Despite the North's isolation and strict curbs on unauthorised foreign culture, enforced with prison terms, K-pop and Seoul's TV shows have become increasingly popular there thanks to flash drives smuggled across the border with China.
Singer Lee Sun-hee, known for her ballads, and veteran singer Cho Yong-pil are other notable singers in the troupe.
They have won over buttoned-up investors at a banking conference with their jingles about teenage love, but the K-pop girl band Red Velvet is about to face what may be its toughest audience yet: North Korea.
Cho Yong-pil, a 68-year-old singer, sang a string of hits including "The Cafe in the Winter", "Short Hair" and "Let's Go on a Trip".
The stiffened crowd refused to respond to the athletes who motioned them to clap their hands to "Fire" - an intense electro-dance score peppered with rapid-fire rap delivered in both Korean and English.