North Korea is criticizing the United States for keeping it on a list of nations that support terrorism.

An annual U.S. State Department report on state-sponsored terrorism issued last month said North Korea is among several nations that maintain ties to terrorists.

Pyongyang's state-run news agency says the report proves the Bush Administration is frantic to overthrow the government of North Korea, and called the United States the kingpin of state-sponsored terrorism.

A South Korean newspaper, Chosun Ilbo, said Tuesday that U.S. spy satellites have spotted activity that could mean North Korea is preparing for a nuclear test.

However, South Korean officials are denying the report. Monday U.S. Secretary of State Condoleezza Rice said there should be no doubt about the United States' ability to deter a North Korean nuclear threat.

Some information for this report provided by AP and AFP.