Do has reportedly already begun discussions with the International Olympic Committee about possible ways to ensure North Korea's participation.
According to the Korea Herald, he will discuss the possibility of North Korea hosting competitions at the Masikryong ski resort.
With the new role, Taeyang will be in charge of performing the Olympic Winter Games' song, and promoting the global multi-sport event.
Moon, the son of refugees from North Korea, advocates greater dialogue with their neighbours.
South and North Korea are still formally at war, as no peace treaty was ever signed after the Korean War of 1950-1953.
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Taeyang, 29, joins actors Lee Min-ho and Kim Woo-bin as "hallyu" stars tasked with extolling the virtues of South Korea's first Winter Games.
North Korea has chose to send its demonstration team to the World Taekwondo Championships, which will be held for three days from Saturday in Muju, North Jeolla Province.
His appointment is aimed at drumming up public support for PyeongChang Olympics, which will be held from February 8-25, 2018 in PyeongChang in Gangwon Province, South Korea.
About 40 percent said they were interested in the Olympics, a four percent increase, with nine percent saying they would attend.
John Delury, a professor at Yonsei University's Graduate School of International Relations, said the games were an appropriate venue to at least try to mend ties.
"We are now reviewing all the ideas put forth by the government and we look forward to discussing this with the International Olympic Committee during their next visit", said Nancy Park, a Pyeongchang 2018 spokesperson.