US military base in Pyeongtaek, Gyeonggi Province, South Korea. (Source: Yonhap)

Taking place from August 21-31, the UFS exercise will be carried out based on an all-out war scenario, including contingent exercises such as computer-simulated command post exercises, field training and civil defense exercises.

North Korea has been heating up the situation on the peninsula recently with leader Kim Jong Un's call to "vigorously enhance" missile production capacity and prepare for future conflict.

“ The Ulchi Freedom Shield 23 is designed to be a robust and realistic exercise to strengthen the alliance’s collective defense posture and response capabilities based on scenarios reflecting diverse threats in the security environment and lessons learned from recent conflicts,” the Joint Chiefs of Staff (JCS) of South Korea said in a statement.

The JCS also said that the exercise is expected to include drills on responding to cyber attacks and terrorism.

Earlier the same day, the Korean Central News Agency (KCNA) reported that leader Kim Jong Un had ordered the “rapid” improvement of missile production capabilities to better meet the needs of frontline and missile units.

Kim Jong Un made the directive during a visit to factories producing strategic missiles, missile launchers and other military equipment on July 11-12, as the US-South Korea alliance prepares to hold the Ulchi Freedom Shield exercise in late August.