North Korea has denounced an agreement between Seoul and Washington to build nuclear-powered submarines, saying in a state media commentary on Tuesday that the deal would cause a "nuclear domino" effect.

South Korean President Lee Jae Myung announced the finalization of a long-awaited security and trade agreement with the United States last week, including plans to move forward with developing atomic-powered vessels.

Seoul said it had secured "support for expanding our authority over uranium enrichment and spent-fuel reprocessing."