American companies were put on notice this week by the Trump administration that they could face steep fines, or even criminal charges, if their business involves North Korean workers anywhere in their supply chain.
Trump did not identify the site, but USA media subsequently reported it was the Sohae Satellite Launching Station.
According to Yonhap, Nam Gwan-pyo, deputy director of the South's national security office, said: "It's better than doing nothing". "I believe they are moving step by step towards denuclearisation".
North Korean leader Kim Jong Un gives field guidance during his visit to the under construction Orangchon Power Station in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang July 17, 2018.
The US Department of State, with the US Department of the Treasury and the US Department of Homeland Security, issuing this advisory to highlight the sanctions evasion tactics used by North Korea that could expose businesses - including manufacturers, buyers, and service providers - to sanctions compliance risks under USA or United Nations sanctions authorities.
After that meeting, Trump said that Kim had promised to very quickly dismantle a missile engine testing base, although he did not specify which base that might be.
Pyongyang appears to be taking down major parts of the Sohae Satellite Launching Ground in Cholsan County, North Pyongan Province, according to an analysis of satellite imagery by the 38 North website Monday.
North Korea insists that its space exploration program is purely civilian, but numerous technologies needed to place a satellite in orbit are similar to those needed to deliver a nuclear warhead to another continent.
The head of diplomacy emphasized however her country has no intention of easing all measures imposed against the northern Democratic People's Republic of Korea (DPRK).
Seoul's defence ministry said Tuesday it was considering withdrawing some troops from the border Demilitarised Zone on a trial basis - a move which could expand into a gradual pullout later.
"It is not on the radar, so to speak", the official said.
In a tweet early on Monday, Mr Trump rejected "fake news" that he was angry because progress was not happening fast enough with North Korea. "He said, 'It will be done.' So I was very happy, and I think that process is starting fairly soon, we hope".
"A Rocket has not been launched by North Korea in 9 months". Likewise, no nuclear tests.
A report in The Washington Post at the weekend said that, inspite of positive assessments Mr Trump has given on progress with North Korea, he has vented anger at aides over a lack of immediate progress.
Last week, Trump said there was "no rush" and "no time limit" on denuclearisation negotiations.
"They need to completely denuclearize, that's the steps that Chairman Kim committed to and that the world has demanded", Pompeo added.