This comes after Pyongyang claimed to have successfully launched a spy satellite into space.
Prime Minister Han Duck-soo said the launch threatened South Korea's security.
Seoul said it would resume surveillance flights along its border with North Korea, breaching a no-fly zone established under the military pact.
Some analysts have said these developments could escalate tensions further.
Pyongyang fired a rocket, said to contain its Malligyong-1 spy satellite, late on Tuesday and hailed the launch as a "success".
On Wednesday, South Korea's military confirmed that the satellite had entered orbit but noted that it was too soon to tell if it was actually functioning, though both it and the US strongly condemned the launch.
US National Security Council spokesperson Adrienne Watson said the move risked "destabilising the security situation in the region and beyond."
Source: www.bbc.com
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