The South Korean Unification Ministry said in a statement that North Korea's decision to cancel the talks which were planned for Wednesday was regrettable.
"The unilateral suspension of the high-level talks between the South and the North under the pretext of the regular US-South Korean air exercises does not correspond to the Panmunjom Declaration, agreed on by the leaders of the two countries on April 27, and is regrettable," the statement read.
The South Korea-US manoeuvres Max Thunder were a rehearsal for an invasion of North Korea, which Pyongyang deemed a "provocation," Yonhap News reported.
Previously, North Korea proposed South Korean government holding a high-level meeting on May 16 at Panmunjom, after the recent breakthrough in their relations.