North Korea on Wednesday denied South Korean media reports that there was an explosion at a military arms factory, accusing Seoul of spreading lies to fuel unrest in the communist country.

In an article carried by the Korean Central News Agency (KCNA), Pyongyang dismissed as groundless reports about an explosion in North Pyongan Province and a fire breaking out on a train carrying equipment for the country's armed forces in Ryanggang Province.

The North news wire service said reports by conservative media outlets aligned with the Park Geun-hye administration, can only be viewed as an underhanded ploy to spread malicious lies.

Last month some South Korean papers and broadcasters, citing unspecified sources, said North Korean military installations were destroyed by a fire and speculated that this could have been caused by terrorist attacks carried out by people opposed to the regime.

It speculated that the lies have been generated to ferment uncertainty within the North and scare away prospective foreign investors. The reports, moreover, said the lies hurt the communist country's image abroad.

Pyongyang canceled a meeting with foreign investors in Beijing, due to the lack of interest shown by businessmen.

The latest attack directed at the South comes as inter-Korean relations have soured in recent week after the unilateral cancellation by the North of a family reunions event for people separated by the 1950-53 Korean War in late September.

Meanwhile, the Rodong Sinmun, an organ of the ruling Workers' Party of Korea (WPK), said that the real culprit behind instability in Northeast Asia is the United States.

Washington's use of aircraft carriers, stealth bombers and nuclear-powered submarines in recent military drills has threatened peace and stability on the Korean Peninsula, it said.

The daily then said that Pyongyang will never bow to pressure and that it has no intention to beg for dialogue. It warned that the threat of war will be countered by the strengthening of the country's military. (Yonhap News)