The annual Ulchi Freedom exercise, which the defence ministry said would run through August 28, is largely computer-simulated, but still involves 50,000 Korean and 3,000 US soldiers.
The drill plays out a full-scale invasion scenario by North Korea and both Seoul and Washington insist it remains purely defensive in nature.
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"Such large-scale joint military exercises... Are little short of a declaration of a war," the North's Committee for the Peaceful Reunification of Korea, which oversees cross-border issues, said last week.
The committee specifically warned of the drill's potential for an accidental military clash that could trigger an "all-out" conflict.
Military tensions are already running high along the Korean peninsula after South Korea blamed the North for mine blasts that maimed members of a border patrol earlier this month.
The South retaliated by resuming high-decibel propaganda broadcasts across the border, using batteries of loudspeakers that had lain silent for more than a decade.
North Korea has denied any involvement and, at the weekend, threatened "indiscriminate" strikes against South Korean border units unless the broadcasts are halted immediately.
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