The South Korean foreign ministry also officially denied that the government was reviewing the matter.
The Chinese sports delegation, including male and female players, arrived in Pyongyang on Monday afternoon before North Korea's Party Foundation Day on Wednesday, marking the 1945 foundation of the precursor of the ruling Workers' Party of Korea.
Foreign Minister Kang Kyung-wha takes an oath during a parliamentary audit of her ministry's affairs at its headquarters in Seoul on October 10, 2018.
The South's dovish President Moon Jae-in favours engagement with the North and has dangled large investment and joint cross-border projects as incentives for steps towards denuclearisation.
Trump and Kim held a historic first summit in Singapore on June 12 at which Kim pledged to work toward denuclearization of the Korean peninsula.
United States ally Seoul has also mooted relaxing its own unilateral measures against Pyongyang. "As there are many (bilateral) sanctions overlapping the United Nations ones, it won't necessarily mean the substantive lifting (of sanctions on the North)". These sanctions, dubbed the May 24 measures, had been put in place after an attack on a South Korean warship in 2010 that killed 46. North and South Korea sent a united team of athletes to compete in some sports at the Asian Games in August, after staging basketball matches in July between Team Peace and Team Prosperity, each mixing both countries' players.
Trump said this week the U.S. had "made incredible progress" in dealing with North Korea, saying: "You've got no rockets flying".
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Seoul's potential removal of unilateral sanctions would be a largely symbolic move as it's virtually impossible for South Korea to resume joint economic projects with North Korea under US-led worldwide sanctions, which have been strengthened considerably since 2016 as the North accelerated its nuclear and missile tests. While U.N. sanctions against North Korea don't ban tourism, they do place restrictions on bulk cash transfers, he said.
The demand for the hike is aimed at covering the costs for the regular or emergency deployment of "strategic assets" to the Korean Peninsula, he said, referring to advanced US weapon systems like stealth fighters, aircraft carriers and nuclear subs.
She suggested that U.S. demands for a full disclosure of North Korean nuclear assets - which Pyongyang has balked at providing - is a poor path to follow, citing how the last time a similar process took place, it disintegrated in 2008 over the issue of related verification protocols.
During her conversation with lawmakers, Kang described Seoul's unilateral sanctions as a key obstacle in restarting South Korean tourism to the North's Diamond Mountain resort, which was suspended in 2008 following the shooting death of a South Korean woman there. The decision had also deprived Kaesong residents of what had been a steady supply of water and electricity.
As part of the agreements reached during Moon and Kim's meetings, a liaison office between the countries opened in Kaesong last month.
During Moon's visit to North Korea last month, he and Kim agreed to normalize operations at the Kaesong factory park and resume joint tours to North Korea when possible, voicing optimism that worldwide sanctions could end and allow such projects.
Other moves by the Koreas to reduce tensions include temporary reunions between war-separated relatives and military agreements that call for reducing weaponry and guards at the border and demining sections of the Demilitarized Zone.