The apparent test came just hours after it claimed to have developed a hydrogen bomb that could be loaded into the country's new intercontinental ballistic missile.
The South's Joint Chiefs of Staff said in a statement that the seismic tremor was detected near the North's Punggye-ri test site.
United States Geological Survey recorded the magnitude at 6.3 -- larger than any previous test.
Jana Pursely, a USGS geophysicist, told AFP: "It's an explosion rather than an earthquake."
Questions remain over whether it has successfully miniaturised its weapons, and whether it has a working H-bomb, but the official Korean Central News Agency said before the quake that leader Kim Jong-Un had inspected such a device at the Nuclear Weapons Institute.
It was a "thermonuclear weapon with super explosive power made by our own efforts and technology", KCNA cited Kim as saying, and "all components of the H-bomb were 100 per cent domestically made".
Pictures showed Kim in black suit examining a metal casing, with a shape akin to a peanut shell.
It has since threatened to send a salvo of rockets towards the US territory of Guam, and last week fired a missile over Japan and into the Pacific, the first time it has ever acknowledged doing so.
US President Donald Trump has warned Pyongyang that it faces "fire and fury", and that Washington's weapons are "locked and loaded".
Trump spoke by telephone to Japan's Prime Minister Shinzo Abe to discuss the need to "maximize pressure on North Korea" in the face of the "growing threat" it presented, according to a White House readout of the call, without specifying when it took place.
When it carried out its fourth nuclear test, in January 2016, it said it was a miniaturised H-bomb, but scientists said the six-kiloton yield achieved then was far too low.
When it carried out its fifth test, in September 2016, it did not say it was a hydrogen bomb.
There was no immediate announcement from the North about today's earthquake.
Yang Moo-Jin of the University of North Korean Studies in Seoul, told AFP the latest KCNA report "carries a strategic message" that Pyongyang "will push for a nuclear face-off with the US as an equal".
The North Korean leadership says a credible nuclear deterrent is critical to the nation's survival, claiming it is under constant threat from an aggressive United States.
It has been subjected to seven rounds of UN Security Council sanctions over its nuclear and ballistic missile programmes, but always insists it will continue to pursue them.
Its first nuclear test was in 2006, and successive blasts are believed to have been aimed at refining designs and reliability as well as increasing yield.
Atomic or "A-bombs" work on the principle of nuclear fission, where energy is released by splitting atoms of enriched uranium or plutonium encased in the warhead.
Hydrogen or H-bombs, also known as thermonuclear weapons, work on fusion and are far more powerful, with a nuclear blast taking place first to create the intense temperatures required.
In today's announcement before the earthquake, KCNA said the North's H-bomb had "explosive power that can be adjusted from tens to hundreds of kilotons depending on the target", KCNA said, claiming technological advances "on the basis of precious successes made in the first H-bomb test".
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