This is seen as an attempt by the U.S.to punish China for allowing its companies to continue illegal trade with North Korea.
The action blocks the designated parties' assets that are in the United States or in the control of US nationals.
The withdrawal is a major setback for South Korean President Moon Jae-in, who has sought improved relations with North Korea alongside the nuclear negotiations between the North and the United States.
North Korean has withdrawn its liaison office with South Korea.
South Korea recently won sanctions waiver from the UN Security Council to send necessary equipment to the DPRK for the video reunion event.
The Treasury Department, in coordination with the State Department and the U.S. Coast Guard, also updated a North Korea shipping advisory, adding dozens of vessels thought to be doing ship-to-ship transfers with North Korean tankers or exported North Korean coal in violation of sanctions.
"We have gone through post-war ashes and the 'arduous march, ' but the challenges that we have been facing in recent 10 years of the century are in effect the most severe hardship in our republic's history", the official Rodong Sinmun daily said. According to the newspaper, the intensified contacts between North Korea and Russian Federation could be a sign of it, with at least three visits to Moscow by North Korea's senior diplomats this month.
President Trump had said at the time that Mr Kim had asked for the removal of all sanctions - which the USA could not agree to.
Walmart considering a gaming service like Google's Stadia, says report
As of now, there are very few details coming from US Gamer , who first began reporting on the rumor yesterday, March 20, 2019. AMD has now announced that cloud-optimized Radeon datacenter GPUs will power Google's Stadia cloud gaming service.
North Korea and the United States held a second summit on February 27 and 28, but the talks ended without a deal. Seoul shut it down in 2016 in retaliation for the North's ballistic missile and nuclear tests. -North Korea summit collapsed due to disagreements over Washington's pressure campaign.
"More than seven decades has passed since Japanese companies produced wartime supplies and exploited Korean forced laborers", the Korea Herald newspaper wrote in an editorial condemning "outdated nationalism" on Thursday.
Trump referred to future sanctions, according to a source familiar with the matter, not Thursday's actions against two Chinese firms.
Both outlets denounced South Korea for "a foolish act... rushing into the issue presumptuously", accusing Seoul of neglecting its commitments under inter-Korean agreements.
It said Liaoning Danxing had "routinely used deceptive practices" to enable the work of North Korean procurement officials based in the European Union.
The Treasury Department said evasion tactics employed by North Korea included disabling or manipulating automated identification systems, physically altering vessels, transferring cargoes between ships and falsifying cargo documentation.
Treasury Secretary Steven Mnuchin said that tough action from the global community must continue for Kim to willingly give up his nuclear weapons.