The US informed Seoul that Mr Kim had been staying at the villa in Wonsan since mid-May, the South Korean Joong Ang Ilbo Sunday newspaper said.
The report said US military satellites, which closely monitor Mr Kim's personal vehicles, had detected his moves.
A South Korean official said it was "certain" Mr Kim was not in Pyongyang. Wonsan is close to a launch facility where South Korea said the North test-fired seven ballistic missiles on Saturday, defying UN resolutions.
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