Malpass also appealed for South Korea's backing for his becoming the next president of the Washington-based lending institution.
The new deal must still be approved by South Korea's parliament, but it would boost its contribution to 1.03 trillion won (687.68 million pounds) from 960 billion won in 2018.
The U.S. military arrived in South Korea to disarm Japan, which colonized the Korean Peninsula from 1910-45, following its World War II defeat.
South Korea and the United States struck a new deal Sunday on how much Seoul should pay for the U.S. military presence on its soil, after previous rounds of failed negotiations caused worries about their decades-long alliance.
South Korea has agreed to substantially increase its contribution to cover the cost of keeping US troops in that country.
Siegfried Hecker, a former director of the U.S. Los Alamos weapons laboratory and one of the report's authors, said satellite imagery showed North Korea's production of bomb fuel continued in 2018.
Seoul contributed around 960 billion won a year ago - more than 40 percent of the total bill - financing the construction of American military facilities and paying South Korean civilians working on USA bases.
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"That action would significantly undermine regional security and our ability to fulfill our treaty obligations to South Korea", said Reed, the top Democrat on the committee.
Foreign Minister Pham Binh Minh, who doubles as Vietnam's deputy prime minister, flew into Pyongyang in the afternoon at the invitation of his counterpart, Ri Yong Ho, and is expected to stay through Thursday.
But both sides worked to hammer out an agreement to minimise the impact on South Koreans working on USA military bases, and focus on nuclear talks ahead of a second U.S.
Following his first meeting with Kim, Trump abruptly announced he would cancel large-scale military training exercises in South Korea. Although North Korea has made no official announcement about the summit so far, political experts are not seeing it in a negative light.
That summit is scheduled for February 27 and 28 in Hanoi, Vietnam. Late previous year, the USA military had warned the South Korean employees on its bases that they may be put on leave from mid-April if no agreement was reached.
Abrams downplayed the impact of curbing those high-level exercises on US and South Korean troops' combat readiness, saying servicemembers have continued to conduct training exercises together on smaller scales.
A top USA commander says he's seen little to no change in North Korea's military readiness or a slowdown in its nuclear weapons program since President Donald Trump and Kim Jong Un met for nuclear talks a year ago.