South Korea's top nuclear envoy made the comment after talks with his Chinese counterpart Wu Dawei, as the US sent a naval strike group to the region in a show of force.
"We agreed that there should be strong additional measures based on UN Security Council resolutions if the North pushes ahead with a nuclear test or an ICBM launch despite warnings from the international community," Kim Hong-Kyun told reporters.
China is the isolated country's sole major ally and economic lifeline, and Beijing in February suspended all coal imports from the North in punishment for Pyongyang's latest missile test.
Speculation of an imminent nuclear test is brewing as the North marks anniversaries including the 105th birthday of its founding leader on Saturday -- sometimes celebrated with a demonstration of military might.
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President Donald Trump, fresh from a missile strike on Syria that was widely interpreted as a warning to North Korea, has asked his advisors for a range of options to rein in its ambitions, a top US official said yesterday.
"(We) are prepared to chart our own course if this is something China is just unable to coordinate with us," US Secretary of State Rex Tillerson said after the summit.
He added however that Beijing had indicated a willingness to act on the issue.
"We need to allow them time to take actions," Tillerson said, adding that Washington had no intention of attempting to remove the regime of Kim Jong-Un.
The US Navy strike group Carl Vinson cancelled a planned trip to Australia this weekend, heading toward the Korean peninsula instead, in a move that will raise tensions in the region.
Seoul and Washington are also conducting joint military drills, an annual exercise which is seen by the North as a practice for war.
Pyongyang is on a quest to develop a long-range missile capable of hitting the US mainland with a nuclear warhead, and has so far staged five nuclear tests, two of them last year.