"There is no factual basis to it at all," South African ambassador- designate to Seoul Hilton Dennis told Kyodo News.
"There has been no North Korean working at the world cup stadiums, and we checked with contractors there," he said.
He added South Africa has no labor relations with North Korea.
Dennis made the comment in response to a news report published Monday by the JoongAng Daily saying an estimated 1,000 North Koreans were being used to work on four or five stadiums in South Africa that need renovation.
"North Koreans have been put to work on four to five stadiums..., including Soccer City stadium in Johannesburg where the opening and closing ceremonies plus the final will be staged," the JoongAng Daily quoted a South Korean source as saying.
North Korean laborers were also said to be working at Mbombela Stadium in Nelspruit where the North Korean soccer team will play Ivory Coast on June 25.
The South African government has budgeted 12 billion rand ($1.6 billion) for 10 stadiums in nine cities, the daily said.
The newspaper report claimed it was the first time so many North Korean laborers were sent to South Africa with which North Korea established diplomatic relations in 1998.
It added it was unclear if the workers would return home upon completing the world cup work or would be engaged in other construction projects.