"While we do not speculate on possible sanctions violations or comment on prospective actions, routine interactions should not be misinterpreted as telegraphing a future sanctions action," a Treasury spokesperson said in response to a Yonhap query.

"Treasury regularly interacts with the US and international private sector to provide general guidance on (Treasury) sanctions and regulations," the spokesperson added.

The rumors come amid a perceived rift in the approach taken by South Korea and the US to dismantling the North's nuclear weapons program.

Seoul has been eager to push inter-Korean economic projects to spur denuclearization, while Washington has appeared wary it could undermine sanctions on the regime.

"Treasury will continue to implement all existing UN and US sanctions until we have achieved the final, fully verified denuclearization of North Korea," the spokesperson said. (Yonhap)