Set for 4 February at Mount Kumgang in the North, it had been part of a series of events ahead of the South's hosting of the Winter Olympics in PyeongChang.
The events, and other links during the Games, were seen as a thawing of ties.
A telegram from the North reportedly blamed "biased" and "insulting" media coverage in the South. South Korea said the decision was "regrettable".
It said the North should uphold all the agreements that had been made.
Art performances and a taekwondo demonstration were among other events agreed with the North.
The South's unification ministry, quoted by the Yonhap news agency, said the North was also angry at media reports about a possible military parade it might hold on 8 February, a day before the opening of the Games.