Kim Jong Un's sister Kim Yo Jong rejects peace overtures made by South Korea
There had been growing optimism that Pyongyang might respond positively to peace overtures made by South Korea's recently elected liberal President Lee Jae-myung.
Seoul's decision to suspend loudspeakers broadcasting anti-North Korean propaganda and to ban balloons from dropping leaflets was followed by Pyongyang's decision to halt its loudspeaker broadcasts.
But Kim Yo Jong, a senior official of North Korea's ruling party who is believed to speak for its leader, said Mr Lee's commitment to the South Korea-US security alliance showed he was no different from his hostile predecessor.
"If South Korea expects to reverse all the consequences of (its actions) with a few sentimental words, there could be no greater miscalculation than that," Ms Kim said in comments reported by state media.
Ms Kim, the North Korean official, called the suspension of activist activities merely a reversal of ill-intentioned activities South Korea should never have initiated.
"In other words, it's not even something worth our assessment," she said.
Mr Lee took office on June 4 after winning a snap election following the removal of hardline conservative Yoon Suk Yeol.
He has vowed to improve ties with Pyongyang that had reached their worst level in years.
Following the KCNA comments on Monday, Mr Lee said it was important to restore trust between the neighbours.
South Korea's Unification Ministry, charged with handling ties between the two countries, said Kim Yo Jong's comments "show the wall of distrust between the South and the North is very high as a result of hostile and confrontational policy over the past few years".
South Korea will keep up efforts for reconciliation and cooperation, ministry spokesperson Koo Byoung-sam told a briefing.
Its new unification minister, Chung Dong-young, said he planned to advise Mr Lee to adjust joint military drills with the United States, Yonhap reported. The exercises have been criticised by Pyongyang.
Still, Mr Lee, whose government is embroiled in tough negotiations with Washington to avert punishing tariffs threatened by US President Donald Trump, has called the US alliance the pillar of South Korea's diplomacy.
Seoul would make efforts in all areas to "strengthen the South Korea-US alliance that was sealed in blood", Mr Lee said on the anniversary of the Korean War armistice on Sunday.
Moon Seong-mook, an analyst for the Seoul-based Korea Research Institute for National Strategy, said Kim Yo Jong's statement shows North Korea is holding out for South Korea to abandon the US alliance.
Mr Moon said that Ms Kim likely sees little upside in engaging with South Korea since it cannot restart economic projects that previously benefited North Korea as long as international sanctions remain in place.
North Korea built cooperation with Russia, sending troops and conventional weapons to support its war in Ukraine, and likely receiving economic and economic assistance in return.
Since beginning his second term in January, Trump has repeatedly boasted of his personal ties with Kim Jong Un and expressed intent to resume diplomacy with him. But North Korea hasn't publicly responded to Trump's overture.
Leif-Eric Easley, professor of international studies at Ewha Womans University in Seoul, said that Kim Yo Jong's statement had a domestic audience.
"Kim Yo Jong's comments are an effort to advance national pride by portraying North Korea in a superior position, despite its economic struggles and international pariah status," Mr Easley said.
"She also seeks to justify Pyongyang's weapons programs and divide Seoul and Washington by criticising upcoming military exercises."
ABC/wires
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