Games sponsor Samsung Electronics has donated 4,000 "Olympic edition" handsets of its flagship Galaxy Note 8 device to be distributed among athletes and IOC officials free of charge.
But a Pyeongchang organizing committee spokeswoman told AFP: "North Korean and Iranian athletes will be excluded because of existing UN sanctions" against the two countries.
The devices retail for around 1,000,000 South Korean won ($920) and so could fall foul of measures banning supplies of luxury goods.
North Korea has sent 22 athletes to the Olympics. Only 10 of them will compete for their country at the Games, with another 12 on the roster of a unified Korean women's ice hockey team.
But critics say the North is taking advantage of the Pyeongchang Games in a diplomatic drive to weaken sanctions imposed on it over its banned nuclear and ballistic missile programmes.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.