The new Japanese measures will include banning all North Korean imports and stopping its ships entering Japanese waters, a government spokesman said.
Japan is also backing US-led efforts to get the UN to impose separate sanctions against the North.
The moves came as the North's second most powerful leader threatened more tests if the US remained "hostile".
The Japanese measures, which were announced by Chief Cabinet Secretary Yasuhisa Shiozaki, will come into effect following a formal cabinet meeting on Friday.
They include new restrictions which will prevent almost all North Koreans from entering Japan.
The sanctions will be in addition to measures Japan announced in July, in response to North Korea's launching of missiles.
Precious cash
The BBC's Chris Hogg, in Tokyo, says the decision to ban all North Korean imports is especially designed to punish Pyongyang.
The export of produce like clams and mushrooms earns precious foreign currency for North Korea in Japanese markets.
Trade between the two countries was worth $180m last year, although it has been falling for several years as political relations between the two countries deteriorated.
