The group had not received an invitation from the North Korean side, a representative at a news conference here. It would have been the first time in nine years for Pyongyang to host the event.
Today, the Korean Central News Agency (North Korea's state news organization) announced the successful test of a new coastal defense cruise missile system, inflicting pain and woe on a target barge created to represent a U.S. "battleship".
The North Korean missile tests present a hard challenge to new South Korean President Moon Jae-in, who has expressed a desire to reach out to the North.
The UN Security Council added 15 people and four entities linked to North Korea's nuclear and missile programmes to a blacklist.
On Tuesday, Sputnik reported the withdrawal of United States aircraft carriers from the Sea of Japan - in North Korea's front yard.
Two North Koreans have made a decision to defect to South Korea after being rescued last week from waters off the east coast of the peninsula, South Korea said on Thursday.
Research from the Korea Institute for National Unification notes that North Korean drones could be used for biological and chemical weapons strikes.
South Korean military spokesman Roh Jae-cheon said the launch was meant to show off Pyongyang's widening arrange of missiles and also its "precision strike capabilities" on ships in response to the joint drills. The USS Ronald Reagan and USS Carl Vinson had been monitoring any possible military action from the North while showing Pyongyang the extent of the US Navy's reach and might.
Trump has called on China to use its relationship as North Korea's chief ally to exert pressure on Kim to rein in his nuclear ambitions.
But North Korea, with it's incessant nuclear provocations and near-weekly missile tests, functions as a giant bullseye to the United States, though any military confrontation runs a high risk of going nuclear and killing hundreds of thousands, if not more.
A State Department spokeswoman, Katina Adams, said the decision to deploy THAAD was an essential response to North Korea's fast-developing nuclear and missiles programs, which has seen dozens of launches and two bomb tests since the start of past year.
North Korea is carrying out carefully calibrated provocations... but restraining from ICBM (inter-continental ballistic missile) tests or nuclear explosions which could bring about military retaliations by (US President Donald) Trump.
In what will likely become another source of animosities, Moon's government said it will let two of the four North Korean fishermen recently rescued at sea resettle in the South in accordance with their wishes. The two other fishermen who want to return home will be repatriated.
North Korea often accuses South Korea of kidnapping its citizens or enticing them to defect to the South.
So far, the Pentagon has said the US trusts South Korea's official stance that the THAAD deployment was an alliance decision and will not be reversed.
North Korea has conducted two nuclear tests and numerous tests of various missiles since the beginning of previous year, in defiance of United Nations sanctions.
The latest missile firing came just one day after South Korea suspended the deployment of the U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system.