MPs were told Mr Hyon was killed on 30 April by anti-aircraft fire in front of an audience of hundreds, the Yonhap news agency reports.
It said Mr Hyon had fallen asleep during an event attended by Kim Jong-un and had not carried out instructions.
The news comes weeks after the reported execution of 15 senior officials.
Among them were two vice ministers who had challenged Mr Kim over his policies and members of an orchestra, the South's National Intelligence Agency (NIS) said at the time.
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