Speaking after the test, Moon said while he prefers dialog with Pyongyang, such a stance is only possible "if we have strong defense".
South and North Korea are still formally at war, as no peace treaty was ever signed after the Korean War of 1950-1953.
It is not the first time proposals for North Korea to host competitions at the Games have been mooted, with the suggestion having been raised back in 2015.More news: Senate Launches Probe Into Loretta Lynch's Handling Of Clinton Investigation
Do will raise the idea of moving some of the skiing events north of the border when he meets the International Olympic Committee president, Thomas Bach, later this month, South Korean media said.
A North Korean taekwondo team will join South Korean athletes this weekend in a demonstration at the opening ceremony of the sport's world championships in Muju, South Korea.
The minister's remarks apparently reflect the hopes of the country's new liberal president, Moon Jae In, to engage the reclusive North through sports, a field in which its leader Kim Jong Un actively promotes exchanges with foreign countries.More news: Obama readied USA for 'cyberwarfare' against Russian Federation after hearing of election interference
"If the South Korean authorities continue to go for confrontation, refusing to accept this will and intention, we will make our own option".
The two teams regularly play each other in friendlies and at global competitions.
"That is not something the two sides can decide", said Mr Jang told reporters, when he was asked about North Korea potentially hosting Olympic events. Their women's football teams played each other in Pyongyang in April, and their women's hockey teams competed in South Korea.
"The whole point of the Olympics is to use sports as a way to bridge even the most acrimonious political divides", he said.More news: Meier hopes Rauner leadership will bring budget compromise