On Monday, The North's National Defense Commission proposed that an end to inter-Korean hostility take effect from Friday, which marked the 42nd anniversary of the inter-Korean July 4th Joint Statement.

It also urged the U.S. to suspend their annual joint military exercises during the Incheon Asian Games set to run this fall.

The South Korean government, however, rejected the North’s proposal.

In a statement by South Korea’s Unification Ministry Tuesday, Seoul said the North's latest proposal is preposterous in blaming the South for raising inter-Korean tensions and lacks sincerity.

Seoul said it's self-contradictory for North Korea to propose building peace, while reaffirming its policy to pursue nuclear program in the same statement. It stressed that if the North truly wants peace on the Korean Peninsula, it must show sincerity in addressing its nuclear issue, which is a fundamental threat to the peace and future of the peninsula.

The government also pointed out it was the North that broke its earlier pledge in January to stop all hostile acts against the South and resumed harsh slander against the South Korean president.

Seoul believes what the North called a "special proposal" was nothing special in terms of content, but rather a one-sided demand.

The timing of the proposal is also seen as insincere as the North had launched a series of rockets and missiles late last month.

The proposal preceded Chinese President Xi Jinping's visit to Seoul this weekend and is considered to be the North's way to express it is discontent over Xi's trip to South Korea.

Pyongyang's future moves are expected to hinge on the results of Xi's visit. It could make even more provocations, or seek to improve inter-Korean relations.