And speaking to Fox News on Sunday, U.S. National Security Adviser John Bolton said releasing the hostages would be "an opportunity" for the North to "demonstrate their authenticity". China, North Korea's biggest trading partner, has joined United Nations sanctions against the North that have cut trade between them by around 90 percent.
According to Victor D. Cha, a Korea scholar at Georgetown University, Trump is considering the move as he believes it would appeal to his political base and also reduce the expenses on the part of the U.S. It may also give him an advantage when he meets Kim, he added.
The US Defense Department has not received any orders to withdraw troops from the Korean Peninsula and is maintaining the same posture in the region, Chief Pentagon Spokesperson Dana White said, Sputnik reported.
Beijing, which has long backed denuclearisation of North Korea had maintained that it would like to work with the two Koreas and the United States for the signing of a definitive peace treaty. "It is literally the blood oath of the American people to South Korea".
Bruce Klingner, a senior research fellow for Northeast Asia at the Heritage Foundation, said, "I think having US military on the peninsula is the most tangible signal of USA resolve and commitment to our allies as possible".
During the inter-Korean summit last Friday, Seoul and Pyongyang - which have been technically at war over the last 65 years as the Korean War (1950-1953) had ended with an armistice and not a definitive treaty - also pledged to sign a peace deal.
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Early this week, Trump told reporters that he is focused on achieving peace in the region. Kim Jong-un and Moon Jae-in shake hands at the border between North and South Korea.
"What will happen to USA forces in South Korea if a peace treaty is signed", special adviser Moon Chung-in said in an opinion column. The presence of USA troops and their families is seen as a key deterrent that's kept more serious hostilities from breaking out on the Korean peninsula.
On the rationale for drawing down USA troops in the region, Trump previously cited what he called "a very big trade deficit" with the South, and claimed "our allies care about themselves".
While Kim has long insisted that USA troops leave the peninsula, and railed against the annual U.S.
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South Korean President Moon Jae-in rejected the idea on Wednesday.
Donald Trump and Mr Kim have exchanged insults from across the globe about the latter's missile tests, so it would seem obvious that this might be on the agenda.