Pyongyang did not respond to Seoul's plan to repatriate the remains of a North Korean national discovered on the southern side of the inter-Korean border.

The denial of the routine handover comes as South Korea’s new leader tries to improve ties with Pyongyang.

South Korea's proposal to return a North Korean body was ignored by Pyongyang, hindering hopes for renewed inter-Korean dialogue.

South Korea and the United States are set to commence their annual large-scale military exercise this month, a move designed to bolster readiness against escalating North Korean threats. The joint drills are, however, likely to provoke an angry response from Pyongyang, further straining diplomatic efforts.

Speaking at a joint press conference, officials downplayed concerns that South Korea’s new liberal President Lee Jae Myung is looking to scale back this year’s drills in an effort to open a door for dialogue with their northern neighbours.

South Korea and the United States will conduct major joint military drills starting on August 18, officials said, although they will delay parts of the annual exercises that have been a source of tension with North Korea to later in the year.