The U.S. has denied a rumor that the Treasury is considering enforcing sanctions against a South Korean bank for illegally trading with North Korea. 

The Treasury Department said on Wednesday that routine interactions should not be mistaken as an announcement of planned sanctions. 

The Treasury said it regularly communicates with private sectors of the U.S. and foreign countries in order to provide general guidelines on sanctions and regulations.  

Rumors had surfaced in the domestic stock market that the U.S. Treasury notified a South Korean bank it would be subject to a secondary boycott for trading with North Korea, which led foreigners to dump Korean shares. 

South Korea's Financial Services Commission refuted the claim on Wednesday, calling it groundless.